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GAINSCO REPORTS 56 PERCENT INCREASE IN SECOND QUARTER EARNINGS; SIX MONTH EARNINGS UP 57 PERCENT

 GAINSCO REPORTS 56 PERCENT INCREASE IN SECOND QUARTER EARNINGS;
 SIX MONTH EARNINGS UP 57 PERCENT
 FORT WORTH, Texas, July 22 /PRNewswire/ -- Gainsco, Inc. (AMEX: GNA), today reported significant increases in net income for the second quarter and six months of 1992.
 Net income for the second quarter of 1992 was $3,235,000, or $.30 per share, an increase of 56 percent over the $2,076,000, or $.19 per share, earned in 1991. For the six months ended June 30, 1992, net income increased 57 percent to $6,157,000, or $.57 per share, from the $3,925,000, or $.36 per share, recorded in 1991.
 Gross premiums written for the six months ended June 30, 1992 were 55 percent above the comparable 1991 period.
 All per share data has been adjusted to reflect the 5 percent stock dividend effected on July 15, 1992.
 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 goal of an $84-88 million range for the year. Our combined ratio of 80.3 percent, for the six-months ended June 30, 1992, is on the favorable side of our targeted 83-85 percent range. More importantly, our goal of a 25-27.5 percent range for return on beginning equity should be achieved."
 He added, "We have dared to let our imaginations soar and as a result, we can, with the help of those who believe in us, achieve great things."
 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
 (Dollars in thousands, except per share data)
 Period ended Three months Six months
 June 30 1992 1991 1992 1991
 Gross premiums written $23,944 $17,502 $45,162 $29,165
 Net premiums written 22,956 15,874 43,315 26,460
 Premiums earned 19,586 12,060 37,408 22,801
 Net investment income 1,346 1,080 2,603 2,129
 Software sales revenues 131 453 359 696
 Premium finance revenues 108 129 263 236
 Plan service revenues (CAIP) 382 165 875 294
 Realized gains 7 0 49 13
 Other income 7 5 15 11
 Total revenues 21,567 13,892 41,572 26,180
 Losses & LAE paid 6,047 4,382 11,371 8,112
 Change in losses & LAE reserves 3,439 1,372 7,032 2,712
 Change in deferred acquisition
 costs (787) (745) (1,308) (652)
 Other expenses 8,459 6,139 16,099 10,833
 Federal income taxes 1,174 668 2,221 1,250
 Net income 3,235 2,076 6,157 3,925
 Net income per share .30 .19 .57 .36
 Weighted average shares outstanding
 & stock equivalents 10,846 10,768 10,846 10,768
 Shareholders' equity, ending 48,083 37,620 48,083 37,620
 Return for the period on
 beginning of the year
 shareholders' equity
 (in percent) 7.71 6.17 14.68 11.66
 Statutory operating ratios (in percent)
 Loss ratio 47.6 46.9 48.4 46.6
 Expense ratio 31.1 32.7 31.9 34.4
 Combined ratio 78.7 79.6 80.3 81.0
 -0- 7/22/92
 /CONTACT: Joseph D. Macchia, president of Gainsco, 817-336-2500, or Lynn Morgen or Michele Katz of Morgen-Walke Associates, 212-986-5900, for Gainsco/
 (GNA) CO: Gainsco, Inc. ST: Texas IN: INS SU: ERN


TQ-OS -- NY012 -- 1731 07/22/92 09:35 EDT
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Date:Jul 22, 1992
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