Washington National reports second quarter earnings.

LINCOLNSHIRE, Ill.--(BUSINESS WIRE)--July 31, 1996--Washington National Corp. (NYSE: WNT, WNT/Pr) reported results for its second quarter ended June 30, 1996.

Reported results include the effects of the previously announced agreements to sell the company's Health Division business.

Summarized financial data is as follows:

-1996 second quarter net operating income from continuing

operations of $6.7 million ($.54 per share) versus $7.1

million ($.57 per share) in 1995;

-1996 second quarter pretax operating income from continuing

operations of $10.4 million compared to $10.9 million in 1995;

-1996 second quarter includes $25.1 million after-tax charge,

including associated expenses, relating to the previously

announced sale of Health Division.

Comparative financial data in thousands is as follows: -0-

                       Quarter Ended June 30,  Six Months Ended June 30,
                          1996       1995           1996        1995
Revenues from
 Continuing Operations  $81,323    $80,487       $162,028    $158,672
Pretax Operating Income
 from Continuing
 Operations              10,440     10,890         21,796      20,234
Net Operating Income
 from Continuing
 Operations               6,725      7,113         14,008      13,092
Discontinued Operations
 including loss on sale
 (net of taxes)         (24,695)     1,829        (25,939)      3,248
Net Income (Loss)      $(16,947)   $ 8,897       $(11,513)   $ 16,187

Per Share:
Net Operating Income
 from Continuing
 Operations            $    .54    $   .57       $   1.12    $   1.05
Discontinued
 Operations            $  (2.02)   $   .15       $  (2.11)   $    .27
Net Income (Loss)      $  (1.39)   $   .72       $   (.95)   $   1.31
-0-

    Health Business Disposal.  During the second quarter, the company
announced plans to sell its Health Division business.  The
individual health insurance and small group life and health
insurance business will be sold through a reinsurance transaction
for cash proceeds of $19 million and the large group life and health
insurance business will also be sold, through a reinsurance
transaction, for an amount to be determined by the future
persistency of the business.  Both sales are expected to close in
the third quarter.
    As a result of exiting the health business, an after-tax charge
of $25.1 million was recorded in the 1996 second quarter.  The loss
includes employee-related and other expenses and net asset
write-offs, including deferred acquisition costs.
    Results for the Health Division are reported as discontinued
operations.  Previous periods have been restated.

    Insurance Operations.  Pretax operating earnings for insurance
operations increased to $9.6 million for the quarter, from $9.5
million in the 1995 quarter.  United Presidential Life Insurance Co.
(UPI), the growth portion of the company's life insurance and
annuity business, reported a four percent profit improvement, to
$5.9 million in 1996 from $5.7 million in 1995.  The improvement in
earnings resulted from increased policy charges and interest
spreads.  Profit on Washington National Insurance Co.'s (WNIC)
closed life insurance and annuity block was $4.1 million in 1996
compared to $3.0 million in 1995.  The increase was the result of
higher interest spreads and lower amortization of acquisition costs
on a portion of the business.  Pretax operating earnings for the
education disability business declined in the second quarter of 1996
from 1995 primarily due to an increase in operating expenses.
    Revenues from insurance operations increased one percent in the
second quarter of 1996 over 1995 to $78.8 million from $77.7
million.  Revenue growth of three percent at UPI and 10 percent for
the education disability business was partially offset by the
anticipated decline in the WNIC closed block where no new sales have
been made since 1989.

    Corporate and Other.  Corporate and other operating income was
$800 thousand in the 1996 second quarter compared to $1.4 million in
1995.  The change was primarily due to a refund of premium taxes in
the second quarter of 1995.

Summary
    Robert W. Patin, Chairman and Chief Executive Officer, said, "We
are pleased with the second quarter's continuation of improved
earnings from our life insurance and annuities business and with the
year-to-date improvement in operating earnings for all of our
insurance operations.  While the quarterly comparison of net
operating income is down slightly from last year's second quarter,
it must be noted that the second quarter of 1995 was the best
quarter of 1995.  Revenue growth for both UPI and our education
disability business is very encouraging."
    Washington National Corp.  is an insurance holding company with
subsidiaries engaged primarily in marketing and underwriting life
insurance and annuities for individuals and specialty health
insurance for educators.
-0-

                   WASHINGTON NATIONAL CORPORATION
                         SUMMARY OF OPERATIONS
               (000s omitted, except per share amounts)

                             Quarter Ended         Six Months Ended
                                June 30,                June 30,
                             1996      1995        1996        1995
Revenues
  Insurance Premiums and
   Policy Charges        $ 38,933  $ 36,911    $ 77,683    $ 73,053
  Net Investment Income    40,835    42,629      81,999      84,544
  Realized Investment Gains
   (Losses)                   368         9        (242)       (606)
  Other                     1,187       938       2,588       1,681

    Total Revenues       $ 81,323  $ 80,487    $162,028    $158,672

Pretax Operating Income
 from Continuing
 Operations
  Insurance Operations   $  9,609  $  9,474    $ 19,912    $ 18,453
  Corporate and Other         831     1,416       1,884       1,781
Pretax Operating Income
 from Continuing
 Operations                10,440    10,890      21,796      20,234
Realized Investment
 Gains (Losses)               368         9        (242)       (606)
Income Taxes on
 Continuing Operations      3,060     3,831       7,128       6,689
Income from Continuing
 Operations                 7,748     7,068      14,426      12,939
Income (Loss) from
 Discontinued Operations,
 net of taxes                 385     1,829        (859)      3,248
Loss on Sale of Health
 Division, net of taxes   (25,080)       --     (25,080)         --
  Net Income (Loss)      $(16,947) $  8,897    $(11,513)   $ 16,187

Per Share Data
 Net Operating Income
 from Continuing
 Operations              $    .54  $    .57    $   1.12    $   1.05
 Net Income (Loss)       $  (1.39) $    .72    $   (.95)   $   1.31
Average Common Share and
 Equivalents Outstanding   12,247    12,254      12,322      12,245

CONTACT: Washington National Corp., Lincolnshire

Craig A. Simundza

Vice President, Financial Reporting

847/793-3053