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Holdings' second quarter earnings moved earlier today, deleting an incorrect reference to property and casualty insurance catastrophe losses./

 RELIANCE REPORTS SECOND QUARTER RESULTS
 NEW YORK, Aug. 4 /PRNewswire/ -- Reliance Group Holdings, Inc.


(NYSE: REL) today reported income from continuing operations of $29.7 million, or $.33 per share, for the second quarter of 1993, compared with income from continuing operations of $6.2 million, or $.08 per share, in the second quarter of 1992. Net income for the second quarter of 1993 was $29.7 million, or $.33 per share, compared with net income of $23.8 million, or $.31 per share, in the 1992 period, which included income from discontinued operations of $14.1 million, or $.19 per share, and an extraordinary gain of $3.5 million, or $.04 per share, from early retirement of debt. Revenues for the second quarter of 1993 totaled $762.3 million, versus $678.9 million in the prior-year period.
 For the first six months of 1993, Reliance reported income from continuing operations of $42.0 million, or $.47 per share, compared with income from continuing operations of $10.2 million, or $.14 per share, in the first six months of 1992. Net income for the first six months of 1993 was $57.9 million, or $.65 per share, compared with net income of $42.6 million, or $.57 per share, in the first six months of 1992. Net income for the 1993 period included a one-time benefit of $15.9 million, or $.18 per share, from an accounting change related to income taxes. Net income for the 1992 period included income from discontinued operations of $29.0 million, or $.38 per share. Revenues for the first six months of 1993 totaled $1.44 billion, versus $1.33 billion in the 1992 period.
 Commenting on the company's performance, Saul P. Steinberg, chairman and chief executive officer, said: "The significant year-to-year improvement in results from continuing operations in the second quarter was attributable to improved operating performance of our insurance businesses and a higher level of realized gains from the sale of investments, principally equity securities."
 Reliance said its property and casualty insurance operating results benefited from higher net investment income in the quarter, including investment income on the proceeds from the sale of Frank B. Hall & Co. Inc. in November 1992. Property and casualty operations produced a combined ratio (the ratio of claims and expenses to earned premiums) of $108.1 percent in the quarter, compared with 107.7 percent in the prior- year period.
 Title insurance profits also were up in the quarter, as Commonwealth Title and Transamerica Title continued to benefit from a surge in residential refinancing activity throughout the country.
 Income from discontinued operations in the 1992 second quarter and six month periods includes the results of Frank B. Hall & Co. and United Pacific Life Insurance Company, both of which were sold as part of Reliance's strategic realignment of its operations to focus on core businesses and improve the quality of its statutory capital.
 Headquartered in New York City, Reliance Group Holdings, Inc. has major operations in property and casualty insurance and title insurance. Total 1992 revenues were $2.76 billion and assets at year end were $8.19 billion.
 RELIANCE GROUP HOLDINGS, INC. AND SUBSIDIARIES
 Consolidated Statement of Income
 (In thousands, except per-share amounts - Unaudited)
 Periods ended Quarter Six months
 June 30 1993 1992 1993 1992
 Revenues:
 Premiums earned $634,405 $578,759 $1,184,433 $1,135,834
 Net investment income 61,300 52,969 124,033 106,012
 Gain on sales of
 investments 35,195 17,494 70,777 30,711
 Other 31,363 29,713 60,360 58,459
 Total 762,263 678,935 1,439,603 1,331,016
 Claims and expenses:
 Policy claims and
 settlement expenses 338,648 309,387 636,504 621,674
 Policy acquisition
 costs and other
 insurance expenses 317,158 288,793 612,680 561,477
 Interest 27,055 28,094 54,608 57,202
 Other operating expenses 43,700 47,239 83,023 83,498
 Total 726,561 673,513 1,386,815 1,323,851
 Income from continuing
 operations before
 income taxes, minority
 interests and equity
 in investee company 35,702 5,422 52,788 7,165
 Income tax (provision)
 benefit (10,000) 28 (15,300) 1,245
 Minority interests (992) (932) (1,922) (1,902)
 Equity in investee company 4,972 1,727 6,472 3,684
 Income from cont. opers. 29,682 6,245 42,038 10,192
 Income from discont. life
 insurance operations -- 13,008 -- 22,224
 Income from discontinued
 insurance brokerage
 operations -- 1,077 -- 6,753
 Income before extraord.
 item and cumulative effect
 of change in accounting
 for income taxes 29,682 20,330 42,038 39,169
 Extraord. item - early
 extinguishment of debt -- 3,460 -- 3,460
 Cumulative effect of
 change in accounting
 for income taxes -- -- 15,911 --
 Net income $29,682 $23,790 $57,949 $42,629
 Per-share information:
 Income from cont. opers. $0.33 $0.08 $0.47 $0.14
 Income from discont. opers. -- 0.19 -- 0.38
 Income before extraord.
 item and cumulative effect
 of change in accounting
 for income taxes 0.33 0.27 0.47 0.52
 Extraord. item - early
 extinguishment of debt -- 0.04 -- 0.05
 Cumulative effect of change
 in accounting for income
 taxes -- -- 0.18 --
 Net income $0.33 $0.31 $0.65 $0.57
 Average number of common
 and common equivalent
 shares outstanding $89,604 $75,619 $89,287 $74,757
 -0- 8/4/93
 /CONTACT: Brian T. Martin, vice president communications of Reliance Group Holdings, Inc., 212-909-1247/
 (REL)


CO: Reliance Group Holdings, Inc. ST: New York IN: INS SU: ERN

SM-OS -- NY035A -- 9507 08/04/93 16:06 EDT
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