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TIG HOLDINGS TAKES MAJOR STEPS IN RESTRUCTURING

 NEW YORK and WOODLAND HILLS, Calif., June 14 /PRNewswire/ -- TIG Holdings, Inc. (NYSE: TIG) reported today that it has taken several significant actions in its efforts to restructure its insurance operations. The actions include the following:
 -- The company will be reducing its workforce by approximately 500 people, out of its present 4,022 employees. TIG's workforce had already been reduced from 4,250 at Dec. 31, 1992 due to separations and attrition.
 -- Due to marketplace pressures hindering its ability to realize reasonable profits, TIG is exiting the completion bond business when existing guaranteed film and TV projects have been completed.
 -- The company has repositioned its investment portfolio to a shorter average life, reducing exposure to the volatility of interest rate changes while maintaining high quality assets. These actions principally affect the company's primary insurance operations and not its reinsurance business.
 In a letter to TIG employees today, Jon Rotenstreich, chairman of the board and chief executive officer, and Don Hutson, president, pointed out that the company's expense ratio is substantially higher than the industry average. They stated, "If we are to provide our customers with competitive products and offer our shareholders a fair return on their investment, this situation cannot continue."
 They continued, "These changes are necessary to improve operating profitability and to maintain our solid financial strength."
 The company also reported that it expects to make final decisions regarding relocation of its facilities by the Fall. TIG did say, however, that the company is committed to maintaining a significant presence in California both in employees and customer base. The company has indicated that it expects to consolidate its operations into approximately 20 locations out of its current 70 nationwide over the next two years. TIG said that it does not expect to retain its offices in the Woodland Hills Trillium Building.
 TIG's restructuring plans were conceptually discussed in the prospectus issued in connection with TIG's initial public offering in April. The prospectus indicated that the company expects to record a restructuring charge in the second quarter which should not exceed $75 million before taxes to cover costs relating to employee separation, lease termination, relocation expenses and other costs associated with restructuring the company's operations.
 Headquartered in New York, TIG Holdings, Inc. is a holding company for Transamerica Insurance Group. Transamerica Insurance Group and its subsidiaries are a property casualty insurance group that offers reinsurance and primary commercial and personal insurance throughout the United States. It is the 27th largest property and casualty insurer and the 10th largest property and casualty reinsurer in the United States, based on 1992 net written premiums.
 -0- 6/14/93
 /CONTACT: Louis Paglia of TIG Holdings, Inc., 212-446-2708; or Andrew Baer or Tracey Stearns of Kekst and Company, 212-593-2655, for TIG Holdings, Inc./
 (TIG)


CO: TIG Holdings, Inc. ST: New York, California IN: INS SU: RCN

WB -- NY098 -- 1806 06/14/93 16:46 EDT
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Publication:PR Newswire
Date:Jun 14, 1993
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