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WALSHIRE ASSURANCE COMPANY REPORTS FIRST QUARTER EARNINGS; REVENUES INCREASE BY 22.5 PERCENT

 YORK, Pa., May 12 /PRNewswire/ -- Walshire Assurance Company (NASDAQ-NMS: WALS) announced today its results for the 1993 first quarter ending March 31.
 First quarter revenues were $6,037,394, a 22.6 percent increase from 1992 first quarter revenues of $4,925,711. The revenue growth reflects the higher sales volume of the company's expanded product line, which includes commercial auto physical damage and liability insurance.
 Total expenses for the quarter were $5,257,826, a 32.5 percent increase from 1992 first quarter expenses of $3,968,845. The relatively higher growth
rate in expenses stems from several factors. This includes a 50 percent increase in commissions paid to agents, a direct result of the higher sales volume. It also includes a 56 percent increase in losses and loss adjustment expenses -- which reflects the company's loss ratio assumption for its new and growing liability insurance business.
 Net income for the quarter was $645,668, or $.22 per share on a primary basis, including $.02 per share resulting from an accounting change ($.21 on a fully diluted basis, including $.02 per share resulting from an accounting change). This compares with net income for the 1992 first quarter of $708,443, or $.31 ($.25 fully diluted). Book value at March 31, 1993 was $9.16 per share, vs. $8.53 per share at the end of the 1992 first quarter.
 Commenting on the results, Ken Taylor, Walshire's president, said "The solid revenue growth demonstrates clear progress in our strategy to grow by expanding our product line and increasing our marketing efforts." Premiums written during the first quarter increased by 46 percent, and the company is now licensed to write business in 30 states.
 "In addition, our policy is to maintain conservative loss ratio assumptions, so as to ensure our financial strength and ability to pay claims. To date, our reported claims experience in our liability business has been below the level of reserves that we have established. We will continue to review our policy to determine whether and when to change our loss ratio assumption for our liability business."
 The company also announced the results of the redemption of its 10 percent convertible subordinated debentures, completed in May. Approximately 94 percent of the debentures, totalling $4,594,000, were converted to common shares. This increases the number of common shares outstanding by approximately 558,000 to 3,355,000.
 Walshire Assurance Company is a regional insurance holding company. Through its subsidiaries, Walshire conducts business in three insurance- related areas: property and casualty insurance; insurance premium finance; and claims adjustment services.
 WALSHIRE ASSURANCE COMPANY
 First Quarter 1993 Financial Highlights
 (unaudited)
 Three months ended March 31, 1993 1992
 Revenues $ 6,037,394 $ 4,925,711
 Expenses 5,257,826 3,968,845
 Inc. bef. inc. taxes &
 cumulative effect of the
 change in accounting for inc. taxes 779,568 956,866
 Provisions for income taxes 194,900 248,423
 Income before cumulative effect of the
 change in accounting for income taxes 584,668 708,443
 Cumulative effect of the change in
 accounting for income taxes 61,000 ---
 Net income $ 645,668 $ 708,443
 Net inc. per common share & common
 equivalent share:
 Primary:
 Inc. bef. cumulative effect of the
 change in accounting for inc. taxes $ .20 $ .31
 Cumulative effect of the change in
 accounting for income taxes .02 --
 Net income $ .22 $ .31
 Wtd. avg. shares outstanding 2,892,241 2,304,642
 Fully diluted:
 Inc. bef. cumulative effect of the
 change in accounting for inc. taxes $ .19 $ .25
 Cumulative effect of the change in
 accounting for income taxes .02 --
 Net income $ .21 $ .25
 Weighted average shares outstanding. 3,490,383 3,631,915
 -0- 5/12/93
 /CONTACT: Gary J. Orndorff, vice president-treasurer of Walshire Assurance, 717-757-0000, or Steven Kennedy of Dewe Rogerson Inc., 212-688-6840, for Walshire Assurance/
 (WALS)


CO: Walshire Assurance Company ST: Pennsylvania IN: INS SU: ERN

SH -- NY076 -- 7676 05/12/93 15:02 EDT
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Publication:PR Newswire
Date:May 12, 1993
Words:653
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