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LIFE USA REPORTS STRONG GAINS IN SALES, REVENUES AND NET INCOME

 MINNEAPOLIS, Oct. 20 /PRNewswire/ -- Life USA Holding, Inc. (NASDAQ-NMS: LUSA), a Minneapolis-based insurance holding company, today reported that 1993 third quarter premiums increased 77 percent, consolidated revenues increased 51 percent and consolidated net income jumped 78 percent from the third quarter of 1992.
 Total collected life and annuity premiums for the quarter (including those collected under an agreement with Allianz Life Insurance Company of North America) were $337.9 million, an increase of $146.6 million over the same quarter in 1992. Third quarter consolidated revenues were $55.6 million, compared to $36.9 million for the same quarter last year. Third quarter consolidated net income increased to $4.1 million from $2.3 million for the same quarter in 1992. Earnings per share increased 25 percent to $.20 for the current quarter from $.16 per share in the third quarter of 1992.
 For the first nine months of 1993, Life USA reported total premiums of $805.9 million, an increase of 65 percent, consolidated revenues of $146.6 million, an increase of 49 percent and consolidated net income of $10.7 million, an increase of 115 percent from the first nine months of 1992. Year-to-date earnings per share were $.56, a 60 percent increase from $.35 per share for the same period in 1992.
 Life USA also reported that during the third quarter, the number of agents contracted to represent the company exceeded 50,000, an increase of almost 12,000 since the beginning of the year.
 In commenting on the results, Robert W. MacDonald, chairman and CEO of Life USA said, "Obviously, we are pleased by what can only be described as exceptional results for the third quarter. Particularly gratifying is the fact that after only nine months of 1993, Life USA has exceeded the premiums, consolidated revenue, recruiting and consolidated net income results reported for all of 1992."
 Life USA Holding, Inc., is a Minneapolis-based insurance holding company with consolidated assets in excess of $2 billion and consolidated shareholders' equity of $99.1 million. Life USA common stock is traded on the NASDAQ National Market using the symbol LUSA.
 Comparative EPS results are impacted by an increase in the number of shares outstanding to 20.5 million as of Sept. 30, 1993, from 14.2 million as of Sept. 30, 1992, primarily as a result of a public offering completed in April 1993.
 LIFE USA HOLDING, INC.
 Consolidated Statement of Income
 (Dollars in thousands, except per share amounts)
 (Unaudited)
 Three Months Ended Nine Months Ended
 9/30/93 9/30/92 Pct. 9/30/93 9/30/92 Pct.
 Chng. Chng.
 Revenues:
 Net investment
 income $13,001 $6,986 86 $33,581 $18,914 78
 Net realized
 gains on
 investments -- -- -- 516 42 1,129
 Commissions and
 expense allowances
 on ceded reinsur-
 ance, net 39,271 27,630 42 103,449 73,228 41
 Other income 3,364 2,240 50 9,082 6,169 47
 Total
 revenues $55,636 $36,856 51 146,628 98,353 49
 Expenses:
 Interest credited
 and other bene-
 fits to policy-
 holders 10,883 6,477 68 29,579 17,946 65
 Amortization of
 deferred policy
 acquisition
 costs 1,633 631 159 4,562 1,383 230
 Commissions 25,388 16,971 50 64,146 45,017 42
 Interest
 expense 188 243 (23) 498 669 (26)
 Taxes, licenses
 and fees 1,596 1,068 49 3,864 3,419 13
 Other operating
 expenses 9,263 7,742 20 26,340 21,853 21
 Total
 expenses $48,951 $33,132 48 $128,989 $90,287 43
 Income before
 taxes 6,685 3,724 80 17,639 8,066 119
 Income taxes 2,598 1,433 81 6,978 3,098 125
 Net income $4,087 $2,291 78 $10,661 $4,968 115
 Earnings per
 share $.20 $.16 25 $.56 $.35 60
 Average number
 of shares
 issued and
 outstand-
 ing 20,481,146 14,206,033 18,873,656 14,187,582
 -0- 10/20/93
 /CONTACT: Robert W. MacDonald of Life USA, 612-591-5201/
 (LUSA)


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

CP-DS -- MN001 -- 4434 10/20/93 09:32 EDT
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Publication:PR Newswire
Date:Oct 20, 1993
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