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VICTORIA FINANCIAL CORPORATION ANNOUNCES RECORD RESULTS FOR FIRST QUARTER

 VICTORIA FINANCIAL CORPORATION
 ANNOUNCES RECORD RESULTS FOR FIRST QUARTER
 CLEVELAND, May 12 /PRNewswire/ -- Victoria Financial Corporation (NASDAQ: VICF), a Cleveland based specialty insurance company, today announced record first quarter results. First quarter Net Operating Income, which excludes realized gains (losses) on sale of investments and extraordinary items, reached $197,000, exceeding the previous year by 36 percent. Net Income increased 167 percent to $356,000, while the combined Operating Ratio remained under 100 for the fourth time in the most recent five quarters. Direct Written Premiums (sales) increased 136 percent to $13,159,000.
 On a fully diluted per share basis, Net Operating Income before extraordinary items, was $.05 in 1992 compared to $.04 in 1991. Net Income increased to $.07 in 1992, compared to $.04 in 1991.
 Operating results were positively impacted by a significant increase in sales volume. This higher than anticipated growth was primarily a result of additional penetration into existing markets and entry into the state of Virginia. The Combined Operating Ratio remained under 100 demonstrating the company's ability to control expense growth, even during periods of significant sales volume growth.
 The Loss and Loss Adjustment Expense Ratio for the quarter was 69.4 compared to 57.1 in the prior period. Loss experience was adversely impacted by weather conditions during the winter months and a higher than anticipated severity on claims. The same period in 1991 experienced better than anticipated weather conditions which resulted in an extremely low loss ratio; a set of circumstances which the company anticipated was unlikely to occur again during the current period. Rate increases taken during late 1991 and early 1992, combined with a return to more normal weather patterns, have reduced the loss ratio in April to anticipated levels and have brought the rate of premium growth closer to company expectations.
 Victoria Financial Corporation, headquartered in Cleveland, is a specialty lines insurance holding company concentrating in nonstandard automobile insurance. The company's annual meeting will be held May 15 at 10 a.m. (EST) at its corporate office. The company currently operates in Arizona, Illinois, Indiana, Iowa, Ohio, Tennessee and Virginia and is licensed to write business in an additional 20 states. The company's common stock trades on the NASDAQ over-the-counter market with the symbol VICF.
 VICTORIA FINANCIAL CORPORATION
 CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
 (Dollars in Thousands)
 For the Three Months Ended
 STATEMENTS OF OPERATIONS March 31, March 31, Percent
 1992 1991 Change
 Direct Written Premiums (sales) $13,159 $5,587 136
 Net Written Premiums 12,930 5,456 137
 Net Earned Premiums 8,501 4,857 75
 Net Investment Income 405 295 37
 Other Revenues 244 129 89
 Total Revenues 9,150 5,281 73
 Loss and Loss Adjustment
 Expenses $5,899 $2,772 113
 Underwriting and Other
 Expenses 2,977 2,290 30
 Total Expenses 8,876 5,062 75
 Pre-tax Net Operating Income 274 219 25
 Income Tax Expense 77 74 4
 Net Operating Income before
 extraordinary item 197 145 36
 Extraordinary Item - Tax Benefit
 from Utilization of an Operating
 Loss Carryforward -- 26 --
 Realized Gain (Loss) on Sale
 of Investments, Net of Tax 159 (38) --
 Net Income $ 356 $ 133 167
 BALANCE SHEETS March 31, March 31, Percent
 1992 1991 Change
 Cash and Investments $32,350 $28,831 12
 Deferred Policy Acquisition Costs 5,409 4,103 32
 Premium Balances Receivable 10,683 7,785 37
 Other Assets 1,922 1,812 6
 Total Assets $50,364 $42,531 18
 Loss and Loss Adjustment Expenses
 Payable $11,367 $10,195 11
 Unearned Premiums 17,820 13,392 33
 Other Liabilities 4,709 3,334 41
 Notes and Debentures Payable 11,674 11,174 4
 Shareholders' Equity 4,794 4,436 8
 Total Liabilities & Shareholders'
 Equity $50,364 $42,531 18
 Common Shares Outstanding 3,181,291 3,181,291 --
 VICTORIA FINANCIAL CORPORATION
 CONSOLIDATED FINANCIAL HIGHLIGHTS
 FOR THE THREE MONTHS ENDED
 MARCH 31
 1992 1991
 Net Operating Income Per Common Share:
 Primary
 Before Extraordinary Item $.06 $.04
 Extraordinary Item -- .01
 Net Operating Income $.06 $.05
 Fully Diluted:
 Before Extraordinary Item $.05 $.04
 Extraordinary Item -- .01
 Net Operating Income $.05 $.05
 Net Income Per Common Share:
 Primary:
 Before Extraordinary Item $.11 $.03
 Extraordinary Item -- .01
 Net Income $.11 $.04
 Fully Diluted:
 Before Extraordinary Item $.07 $.03
 Extraordinary Item -- .01
 Net Income $.07 $.04
 Combined Operating Ratio (GAAP Basis):
 Loss and Loss Adjustment Expense Ratio 69.4 57.1
 Underwriting and Other Expense Ratio 30.2 41.7
 Combined Operating Ratio 99.6 98.8
 -0- 5/12/92
 /CONTACT: Tab A. Keplinger, assistant vice president of Victoria Financial Corporation, 216-461-3461/
 (VICF) CO: Victoria Financial Corporation ST: Ohio IN: INS SU: ERN


KK -- CL011 -- 9064 05/12/92 11:12 EDT
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Date:May 12, 1992
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