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OLD LYME HOLDING CORPORATION THIRD QUARTER PRO FORMA NET INCOME PER SHARE INCREASES 50.0 PERCENT

 NEW YORK, Oct. 28 /PRNewswire/ -- In its first quarterly earnings report since becoming a public company on August 17, 1993, Old Lyme Holding Corporation (NASDAQ-NMS: OLHC) reported a 50.0 percent increase in pro forma net income per share for its third quarter ending September 30, 1993 versus the comparable period last year.
 Pro Forma net income for the third quarter rose 70.6 percent to $1,090,000 from $639,000 reported in the same period last year. Pro forma net income per share rose 50.0 percent to $0.18 from $0.12 in the prior year, notwithstanding a 14.5 percent increase in the average shares outstanding this year because of the Company's initial public offering on August 17, 1993. Prior to August 17, 1993, the taxes on income of certain of Old Lyme's subsidiaries were paid by the Company's private shareholders or partners of the Company, thereby resulting in an artificially low tax rate. The pro forma results discussed above includes a charge in lieu of income taxes which provides for taxes as if the Company had been taxed as a corporation.
 Net premiums written for the third quarter rose 32.8 percent to $5,927,000 from $4,463,000 in the comparable period last year. However, net premiums earned and total revenues decreased to $4,020,000 and $4,456,000, respectively in this year's third quarter from $5,033,000 and $5,579,000, respectively in
the same period last year. These decreases are attributable to the fact that the company was successful in reinsuring a greater portion of its risks to unrelated third-party reinsurers resulting in lower net premiums earned and total revenues, but, in fact, improving the potential profitability. The Company continues to seek cost effective reinsurance arrangements which result in lower per claim exposure on programs whenever possible, although these reinsurance arrangements often result in the reporting of lower net premiums earned and total revenues, but not lower profits.
 In commenting on the third quarter results, Lawrence Greenfield and Bruce Guthart, Chairman and President, respectively, stated, "We are pleased to be able to report such favorable results for our first period as a public company. However, we must caution our new shareholders not to expect continued quarterly jumps of 70.6 percent in pro forma net income since last year's third quarter results were impacted by the losses incurred by Hurricane Andrew. We are working diligently on adding new programs to the eleven programs currently offered by Old Lyme Holding Corporation and expanding the distribution system."
 Old Lyme's financial position was significantly strengthened by the August 17, 1993 initial public offering. Old Lyme's stockholders' equity rose to $26,543,000 or $3.78 per share as of September 30, 1993 from $9,110,000 or $1.72 per share in the comparable period last year. Currently, Old Lyme's premiums written to stockholders equity is running at an extremely conservative ratio of approximately one-to-one. Old Lyme Insurance Company of Rhode Island, Inc., a subsidiary of the Company, has requested a financial review from A.M. Best & Co. and hopes to receive a Best letter rating in the near future.
 For the nine months ending September 30 1993, the Company's pro forma net income was up 29.6 percent to $3,298,000 from $2,545,000 for the same period of last year. Pro forma net income per share increased by 22.9 percent to $0.59 from $0.48 in the prior year notwithstanding a 4.9 percent increase in the average shares outstanding. Net premiums written for the nine month period reached $14,496,000, up 15.1 percent from $12,592,000 for the same period last year. For reasons similar to the third quarter, however, net premiums earned and total revenues decreased to $13,220,000 and $15,169,000, respectively, during the first three quarters of this year from $15,631,000 and $17,130,000, respectively for the same period last year.
 Old Lyme Holding Corporation, through its wholly owned insurance subsidiaries, Old Lyme Insurance Company of Rhode Island, Inc. and Old Lyme Insurance Company, Ltd. (Hamilton, Bermuda) underwrites property and casualty insurance. The Company markets a number of insurance programs including purchasing groups for restaurants and residential apartment buildings as well as affinity groups in the retail, pharmacy and other industries. Business is generated through a network of affiliated and independent insurance agents and brokers.
 OLD LYME HOLDING CORPORATION
 Reports Third Quarter and Nine Months 1993 Results
 ($ in thousands except for per share amounts)
 Three Months Ended Nine Months Ended
 September 30 September 30
 1993 1992 1993 1992
 Revenues:
 Net premiums written $5,927 $4,463 $14,496 $12,592
 Change in
 unearned premium (1,907) 570 (1,276) 3,039
 Net premiums earned 4,020 5,033 13,220 15,631
 Net investment income 435 469 1,328 1,401
 Net realized gains on
 investments 1 77 621 98
 Total revenues 4,456 5,579 15,169 17,130
 Expenses:
 Losses & loss expense 1,392 2,464 5,788 7,774
 Acquisition costs & general
 & administrative expenses 1,481 2,180 4,520 5,572
 Total expenses 2,783 4,644 10,308 13,346
 Income before income taxes 1,583 935 4,861 3,784
 Income taxes (actual) 103 (43) 241 35
 Net income 1,480 978 4,620 3,749
 Net income per share $0.24 $0.18 $0.83 $0.71
 Additional charge in lieu of
 income taxes(A) 390(A) 339(A) 1,322(A) 1,204(A)
 Pro forma net income 1,090 639 3,298 2,545
 Pro forma net income
 per share $0.18 $0.12 $0.59 $0.48
 Per share data:
 Weighted average common shares
 outstanding 6,065 5,295 5,555 5,295
 (A) Prior to the public offering which occurred on August 17, 1993, the tax on income of certain of the Company's subsidiaries was paid by the shareholders or partners and not by the Company. Effective with the public offering, the company's income will be included in a consolidated Federal Income Tax Return. The proforma results shown above includes an additional charge in lieu of income taxes which provides for taxes as if the Company had been taxed as a corporation.
 OLD LYME HOLDING CORPORATION
 Selected Balance Sheet Data at September 30, 1993:
 ($ in thousands except Book Value Per Share)
 September 30
 1993 1992
 Assets
 Investments and cash $46,914 $27,341
 Premium balance receivable 11,385 5,050
 Total assets 66,150 37,650
 Liabilities & stockholders' equity
 Unpaid losses and loss expenses 18,233 18,336
 Unearned premiums 5,711 3,891
 Stockholders equity 26,543 9,110
 Book value per share $3.78 $1.72
 -0- 10/28/93
 /CONTACT: Bruce Guthart, President of Old Lyme Holding Corporation, 212-210-9259/
 (OLHC)


CO: Old Lyme Holding Corporation ST: New York IN: INS SU: ERN

MP-PS -- NY022 -- 7806 10/28/93 10:45 EDT
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Date:Oct 28, 1993
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