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GAINSCO INCREASES EARNINGS 58 PERCENT AND WRITINGS INCREASED 82 PERCENT

GAINSCO INCREASES EARNINGS 58 PERCENT AND WRITINGS INCREASED 82 PERCENT
 FORT WORTH, Texas, April 22 /PRNewswire/ -- Gainsco, Inc. (AMEX: GNA), today reported a 58 percent increase in net income for the first quarter ended March 31, 1992, to $2,921,000 versus $1,850,000 in the first quarter of 1991.
 Net income per share for the first quarter of 1992 was 28 cents, compared to 19 cents per share for the first quarter of last year. Gross premiums written for the first quarter of 1992 were $21,217,000, representing an 82 percent increase over the 1991 period.
 The company attributed the sharp rise in writings and profits to an increase in its share of selected insurance business in key markets.
 Commenting on the results, Joseph D. Macchia, chairman of the board, president and chief executive officer, stated, "Gross writings continue to increase and are on target with our plans for the year. Our statutory loss ratio of 49.2 percent and combined ratio of 81.9 percent are both on the favorable side of our targeted ranges. More importantly, our goal of a 22 to 25 percent return on beginning equity for 1992 is well within reach."
 He added, "We are ecstatic with the results to date. We don't wish to be overconfident or complacent, however. To ensure continued high performance, we are prepared to redouble our efforts and maintain our resolve for absolute discipline in underwriting and pricing."
 Gainsco, Inc., is a vertically integrated property and casualty insurance company specializing in underwriting and marketing excess and surplus lines. The company's subsidiaries include General Agents Insurance Company of America, Inc., an Oklahoma corporation; General Agents Premium Finance Company, which offers premium financing programs for general agents in connection with their marketing activities; Agents Processing Systems, Inc., which markets a computer software policy management system to general agents; and Risk Retention Administrators, Inc., which assists managing general agents in forming and operating risk retention groups. In addition, General Agents Insurance Company of America, Inc. operates a wholly owned subsidiary, MGA Insurance Company, Inc., which is the sole owner of MGA Agency, Inc., the company's marketing arm.
 GAINSCO, INC., AND SUBSIDIARIES
 Condensed Consolidated Statements of Operations
 (In thousands, except per share data)
 Quarter ended March 31 1992 1991
 Gross premiums written $21,217 $11,663
 Net premiums written 20,360 10,586
 Premiums earned 17,822 10,740
 Net investment income 1,256 1,049
 Software sales revenues 228 244
 Premium finance revenues 155 107
 Plan service revenues (CAIP) 493 129
 Other income 50 19
 Total revenues 20,004 12,288
 Losses and LAE incurred 8,917 5,070
 Expenses 7,120 4,786
 Federal income taxes 1,046 582
 Net income $ 2,921 $ 1,850
 Net income per share $.28 $.19
 Wtd. avg. shares outstdg. & common stock equivs. 10,311 9,998
 Return for the period on beginning of the year
 shareholders' equity (percent) 6.97 5.49
 Statutory operating ratios (percent):
 Loss ratio 49.2 46.2
 Expense ratio 32.7 36.9
 Combined ratio 81.9 83.1
 -0- 4/22/92
 /CONTACT: Joseph D. Macchia, president of Gainsco, 817-336-2500, or Lynn Morgen of Morgen-Walke Associates, 212-986-5900, for Gainsco/
 (GNA) CO: Gainsco, Inc. ST: Texas IN: INS SU: ERN


GK-TS -- NY010 -- 1037 04/22/92 08:17 EDT
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Publication:PR Newswire
Date:Apr 22, 1992
Words:551
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