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LIFE USA HOLDING, INC. REPORTS A 110 PERCENT INCREASE IN EARNINGS -- REVENUES INCREASE 28 PERCENT

 MINNEAPOLIS, Feb. 8 /PRNewswire/ -- Life USA Holding, Inc. (NASDAQ-NMS: LUSA), today announced 1992 consolidated net income of $9.9 million or $.66 per share, compared to $4.7 million or $.33 per share for 1991. Consolidated total revenues increased 28 percent to $145.8 million in 1992 from $113.6 million in 1991. Of the consolidated net income reported, $8.0 million or $.54 per share represented ongoing operations of the company (net of taxes and excluding capital gains), compared to consolidated operating income of $2.0 million or $.14 per share in 1991, an increase of almost 300 percent.
 For the fourth quarter of 1992, Life USA reported consolidated net income of $4.9 million or $.33 per share, compared to $2.9 million or $.21 per share for the same period in 1991, an increase of 67 percent. Consolidated total revenues for the fourth quarter of 1992 were $47.4 million compared to $40.4 million for the same period in 1991.
 In commenting on the results, Robert W. MacDonald, chairman and CEO of Life USA said, "Good years are easy to explain. Sales were up and expenses were down relative to sales. Even I can look good under those conditions."
 Total collected life and annuity premiums for 1992 were $714.3 million, an increase of 38 percent over the $516.1 million reported for 1991 (includes premiums collected under an agreement with North American Life and Casualty).
 At Dec. 31, 1992, Life USA's consolidated assets expanded to $527.3 million from $311.7 million at Dec. 31, 1991, an increase of almost 70 percent. Life USA shareholders' equity increased to $39.3 million at Dec. 31, 1992, a 36 percent increase over the $28.8 million reported at the end of 1991. Total life insurance in force exceeded $5.5 billion at the end of 1992.
 Life USA Holding, Inc. is an agent and employee-owned insurance holding company founded in 1987. LifeUSA Insurance Company, the sole subsidiary of Life USA, is represented by over 40,000 field agents and 275 home office employees. Life USA Holding, Inc. common stock is a designated stock on the NASDAQ National Market, trading under the symbol LUSA.
 LIFE USA HOLDING, INC.
 Consolidated Statement of Income
 (Dollars in thousands, except per share amounts)
 Three Months Ended
 12/31/92 12/31/91 Percent
 (unaudited) Change
 Revenues:
 Net investment income $8,170 $4,622 76.8
 Net realized gains on investments 4,514 10,163 (55.6)
 Commissions and expense allowances
 on ceded reinsurance, net 32,332 24,018 34.6
 Other income 2,431 1,558 56.0
 Total revenues 47,447 40,361 17.6
 Expenses:
 Commissions 18,999 16,505 15.1
 Interest credited and other
 benefits to policyholders 7,890 7,202 9.6
 Amortization of deferred policy
 acquisition costs 2,525 4,351 (42.0)
 Taxes, licenses and fees 2,149 982 118.8
 Interest expense 209 150 39.3
 Other operating expenses 8,062 6,920 16.5
 Total expenses 39,834 36,110 10.3
 Income before taxes 7,613 4,251 79.1
 Income taxes 2,711 1,322 105.1
 Income before extraordinary item 4,902 2,929 67.4
 Extraordinary item -- 11 100.0
 Net income $4,902 $2,940 66.7
 Net income per share $.33 $.21 57.1
 Average number of shares issued
 and outstanding 14,896,014 14,153,730 --
 Year Ended
 12/31/92 12/31/91 Percent
 (audited) Change
 Revenues:
 Net investment income $27,085 $16,904 60.2
 Net realized gains on investments 4,557 10,163 (55.2)
 Commissions and expense allowances
 on ceded reinsurance, net 105,559 81,436 29.6
 Other income 8,599 5,072 69.5
 Total revenues 145,800 113,575 28.4
 Expenses:
 Commissions 64,016 55,995 14.3
 Interest credited and other
 benefits to policyholders 25,835 17,940 44.0
 Amortization of deferred policy
 acquisition costs 3,908 4,675 (16.4)
 Taxes, licenses and fees 5,568 1,813 207.1
 Interest expense 878 493 78.1
 Other operating expenses 29,916 25,956 15.3
 Total expenses 130,121 106,872 21.8
 Income before taxes 15,679 6,703 133.9
 Income taxes 5,809 2,029 186.3
 Income before extraordinary item 9,870 4,674 111.2
 Extraordinary item -- 17 100.0
 Net income $9,870 $4,691 110.4
 Net income per share $.66 $.33 100.0
 Average number of shares issued
 and outstanding 14,887,306 14,069,068 --
 -0- 2/8/93
 /CONTACT: Robert W. MacDonald of Life USA, 612-591-5201/
 (LUSA)


CO: Life USA Holding, Inc. ST: Minnesota IN: INS SU: ERN

AL -- MN017 -- 4320 02/08/93 17:22 EST
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Date:Feb 8, 1993
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