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NUCORP REPORTS RESULTS

 CHICAGO, March 4 /PRNewswire/ -- Nucorp, Inc. (NASDAQ: NUCO) today reported net income of $10.7 million for 1992, a 48 percent increase compared to net income of $7.2 million for last year. Fourth quarter net income was 123 percent higher at $4.5 million compared to $2.0 million for the fourth quarter of 1991. The increase in net income is in part the result of the purchase of Western Surety Company in August 1992.
 On a fully diluted per share basis, earnings were 88 cents for 1992 compared to 79 cents last year, after the effect of a 15 percent increase in the average number of shares outstanding. Per share earnings for the fourth quarter of 1992 were 31 cents compared to 22 cents in the prior year's fourth quarter. The weighted average shares outstanding are expected to be at least 15.3 million for calendar 1993 compared with 12.2 million for calendar 1992.
 Pretax income exclusive of realized investment gains and amortization of goodwill rose to $19.6 million, or $1.60 per share, in 1992 from $10.2 million, or 96 cents per share in 1991. For the fourth quarter, pretax income exclusive of realized investment gains and amortization of goodwill rose to $9.6 million, or 62 cents per share, in 1992 from $2.5 million, or 23 cents per share, in 1991.
 Consolidated revenues rose 76 percent in 1992 to $61.5 million from $34.9 million reflecting the purchase of Western Surety. Fourth quarter revenues increased 210 percent to $28.1 million in 1992 from $9.1 million last year. Western Surety contributed $29.7 million to the increase in 1992 and $20.1 million in the fourth quarter.
 "Western Surety's contributions to Nucorp have been every bit as significant as we expected them to be at the time of the acquisition," said Bruce Esselborn, president of Nucorp. "Our strategy of evening out the cyclical bumps of United Capitol through the acquisition of a steady grower like Western Surety is clearly the right one. Early results for the first quarter of 1993 indicate that Western will continue to build on last year's results."
 "Very good loss development at United Capitol also contributed to an exceptional quarter and year. We continue to believe we are well- positioned to benefit from an eventual hardening of the property and casualty market."
 Direct written premiums increased to $50.1 million for 1992 from $23.1 million in 1991. Fourth quarter direct written premiums increased to $23.7 million from $6.8 million in 1991. For 1992, Western Surety accounted for $23.0 million of the increase while United Capitol accounted for $4.0 million, and for the fourth quarter Western Surety accounted for $15.6 million of that increase while United Capitol accounted for $1.3 million. The increase at United Capitol is a result of increased broker submissions and writings following United Capitol's receipt in May 1991 of its first A.M. Best Company rating and growth in writings of asbestos abatement liability business on an occurrence form.
 Net investment income from insurance operations rose 11 percent to $14.6 million for 1992 from $13.2 million in 1991.
 The statutory combined ratio for Western Surety was 89.7 percent in 1992, compared to 81.9 percent in 1991. The statutory loss ratio was 17.8 percent in 1992, compared to 10.9 percent in 1991. The statutory expense ratio was 71.9 percent in 1992 and 71.0 percent in 1991.
 United Capitol's statutory combined ratio was 63.0 percent in 1992, compared to 84.9 percent in 1991. Statutory loss ratio in 1992 was 42.7 percent compared to 59.1 percent in 1991 while statutory expense ratio was 20.3 percent in 1992 and 25.8 percent in 1991.
 Nucorp, an acquisition company, is involved primarily in specialty property and casualty insurance, through United Capitol Insurance Company and Western Surety Company. United Capitol is rated A minus (Excellent) by A.M. Best Company, and conducts business principally as an excess and surplus lines insurer in all 50 states, the District of Columbia and Puerto Rico. Western Surety Company, a leading writer of small fidelity and non-contract surety bonds, is rated A plus (Superior) by A.M. Best and is licensed in all 50 states and the District of Columbia.
 NUCORP, INC. AND SUBSIDIARIES
 Investor Data
 Year Fourth Quarter
 Periods ended Dec. 31 1992 1991 1992 1991
 Operating data:
 Direct written premiums $50,105 $23,144 $23,666 $ 6,839
 Net written premiums $40,310 $15,729 $20,257 $ 4,337
 Income statement data:
 Net earned premiums $41,249 $15,826 $21,352 $ 4,020
 Net investment income 14,636 13,238 4,374 3,247
 Realized investment gains 2,334 1,119 1,695 532
 Corporate & other income 3,254 4,707 728 1,274
 Total revenues 61,473 34,890 28,149 9,073
 Insurance Expenses:
 Net losses & loss
 adjustment 10,778 9,252 3,244 2,277
 Net commissions, brokerage &
 other 11,786 4,090 4,636 1,239
 Interest 4,838 4,998 1,747 1,080
 Amortization of
 intangibles 7,855 255 6,055 0
 Amortization of goodwill 1,027 597 457 150
 Corporate & Other Expenses 4,300 4,990 1,191 1,472
 Total expenses 40,584 24,182 17,330 6,218
 Income before taxes 20,889 10,708 10,819 2,855
 Income taxes 10,194 3,500 6,300 830
 Net income $10,695 $ 7,208 $ 4,519 $ 2,025
 Weighted average number
 of common and common
 equivalent shares
 outstanding 12,214 10,606 15,305 10,662
 Fully diluted net income
 per share $ 0.88 $ 0.79 $ 0.31 $ 0.22
 -0- 3/4/93
 /CONTACT: Kirk Brewer, 312-258-4359 or Susan Obuchowski, 312-466-4010, both of Nucorp, Inc/
 (NUCO)


CO: Nucorp, Inc. ST: Illinois IN: INS SU: ERN

WB -- NY041 -- 2911 03/04/93 10:57 EST
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Date:Mar 4, 1993
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