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/REPEATING TO POINT AS NEEDED/ McM CORPORATION REPORTS RESULTS

 RALEIGH, N.C., May 12 /PRNewswire/ -- McM Corporation (NASDAQ: MCMC), a Raleigh based insurance holding company, reported consolidated net income of $915,000 or $.20 per share for the first quarter of 1993 compared to net income of $122,000 or $.03 per share for the same period last year. These results of operations include McM's property and casualty subsidiaries, Occidental Fire & Casualty Company of North Carolina and Wilshire Insurance Company.
 Consolidated gross revenues for the three months ended March 31, 1993, were $16,501,000 compared to $16,835,000 for the same period in 1992. Premium revenue decreased approximately $432,000 in relation to that of the prior year. In addition, net investment income was $275,000 less than the same period last year resulting from a reduction in invested balances and the continuing effects of declines in interest rates that occurred during 1992. Included in total revenues and partially offsetting the items mentioned above are realized investment gains of $453,000 for the first quarter of 1993 compared to gains of $93,000 in 1992.
 Shareholders' equity at March 31, 1993, was $20,421,000 or $4.37 per share compared to $19,506,000 or $4.17 per share at Dec. 31, 1992. Consolidated assets totalled $180,733,000 at March 31, 1993, compared to $187,006,000 at Dec. 31, 1992.
 The property and casualty operations showed significant improvement for the first quarter of 1993 reflecting reduced claims severity in McM's commercial automobile business. In addition, the first quarter results were not adversely affected by claims development which had emerged in recent prior quarters.
 McM also announced that a Federal Court in the Western District of Missouri is entering a summary judgment against Occidental Fire resulting from a May 10, 1993, hearing in a lawsuit involving discontinued property and casualty programs which was filed by the receiver of a reinsurance company in liquidation. Occidental Fire has the right to attempt to modify or set aside the ruling prior to the final date of the judgment. The judgment, should it become final, would require the company to reimburse the receiver for a 1990 draw on a letter of credit of approximately $6.7 million plus interest and costs. The company and its trial counsel believe that the entry of summary judgment was made in error. The company and its trial counsel are considering all alternatives but currently plan to ask the court to reconsider the decision to enter summary judgment and, if unsuccessful, to file for appeal and vigorously contest such judgment. No amounts have been accrued in the financial statements of the company relating to this pending litigation.
 FINANCIAL HIGHLIGHTS
 March 31, Dec. 31, Percent
 (Thousands of dollars) 1993 1992 Change
 Assets $180,733 $187,006 -3.4 pct.
 Shareholders' Equity $20,421 $19,506 4.7 pct.
 Report for the Three Months Ended March 31, 1993 (Unaudited)
 Three Months Ended
 March 31,
 (Thousands of dollars,
 except per share data) 1993 1992
 Premiums $14,362 $14,794
 Gross Investment Income 1,635 1,903
 Realized Investment Gains 453 93
 Other Income 51 45
 TOTAL REVENUES $16,501 $16,835
 INCOME BEFORE INCOME TAX 915 122
 NET INCOME $915 $122
 PER SHARE DATA:
 Income Per Share $0.20 $0.03
 Cash Dividends Per Share
 Declared By McM $0.00 $0.00
 -0- 5/12/93 R
 /CONTACT: Stephen L. Stephano, Exec. V.P., McM Corporation, 919-833-1600/
 (MCMC)


CO: McM Corporation ST: North Carolina IN: INS SU: ERN

SB -- CH012R -- 8028 05/13/93 10:47 EDT
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Publication:PR Newswire
Date:May 13, 1993
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