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ALLIED GROUP, INC. REPORTS BEST SECOND QUARTER EVER

 DES MOINES, Iowa, July 30 /PRNewswire/ -- On July 6, ALLIED Group, Inc. (NASDAQ: ALGR) estimated that second quarter earnings before net realized gains would be in the range of $0.57 to $0.64 per share and six-month earnings would be between $1.26 and $1.33 per share, projecting the release would be made on July 23. "Then came the floods," said Chairman John E. Evans, "that curtailed nonessential operations and delayed our earnings release."
 "Water service has been restored, electrical power is up to speed, our final numbers are in, and I'm pleased to say we hit the top of the estimated earnings and had our best second quarter ever," reported Evans. Fully diluted earnings per share before net realized gains were $0.64 for the second quarter and $1.32 for the six months compared with $0.42 and $0.92 for the same periods of 1992.
 Including realized gains, the earnings per share were $0.65 for the second quarter and $1.37 for the year to date; comparable earnings in 1992 were $0.43 and $1.00. "Let me remind investors that all earnings reflect the June 30 three-for-two stock split the board of directors authorized in a show of confidence," said Evans.
 The public company's results were aided by three recent transactions; a preferred stock exchange, a property-casualty pooling percentage increase, and appointment of an ALLIED Group, Inc. subsidiary as the pool administrator. The property-casualty segment was the major contributor to the six-month consolidated pre-tax profit of $28.6 million; $22.5 million came from that segment.
 Net written premiums for the pool (including ALLIED Mutual Insurance Company) increased 12 percent to $277.5 million at midyear from $247.7 million at June 30, 1992. ALLIED Group, Inc.'s portion of the pool's net earned premiums increased 19.5 percent to $166.3 million from $139.2 million.
 The property-casualty segment's midyear 1993 statutory combined ratio (after policyholder dividends) was 98.0; at midyear 1992, it was 101.3. The underwriting gain (on a generally accepted accounting principles basis) was $2.3 million compared with a loss of $3.4 million at the previous midyear.
 Wind and hail losses were not significantly different from those a year ago. At June 30, 1993, they totaled $6.9 million ($0.34 per share); at June 30, 1992, they came to $6.8 million ($0.32 per share).
 "Though the Midwestern floods and accompanying volatile weather in July are unrelated to our six-month performance, I want to assure everyone ALLIED's home office was not damaged and we continued to provide full service to our policyholders, our claimants, and the independent agents representing us," Evans stated. "Our losses for the month were not unusually severe. Of course there were some additional expenses involved in setting up temporary operations, but they were not material."
 Allied Group, Inc. is a regional property-casualty insurance holding company specializing in personal lines. The company's property- casualty subsidiaries use independent agencies, exclusive agencies, and direct response marketing to offer products in suburban and rural areas of central and western states.
 ALLIED GROUP, INC.
 SUMMARIZED CONSOLIDATED FINANCIAL HIGHLIGHTS
 Three months ended
 6/30/93 6/30/92
 Premiums earned $90,386,548 $78,978,425
 Investment income excluding realized
 gains 9,919,098 8,328,477
 Realized investment gains 218,811 253,546
 Investment services 11,728,099 7,925,879
 Other income 7,562,290 12,748,747
 Revenues 119,814,846 108,235,074
 Losses and expenses 106,280,179 99,453,999
 Income before income taxes 13,534,667 8,781,075
 Income taxes 3,542,912 2,170,133
 Net income $9,991,755 $6,610,942
 Fully diluted earnings per share
 Net operating income $0.64 $0.42
 Realized investment gains, after tax $0.01 $0.01
 Net income $0.65 $0.43
 Weighted average shares 13,753,247 14,632,307
 Wind and hail losses per share $0.24 $0.27
 Primary earnings per share $0.91 $0.57
 Dividends paid per common share $0.13 $0.11
 Six months ended
 6/30/93 6/30/92
 Premiums earned $177,978,762 $154,033,596
 Investment income excluding realized
 gains 19,199,665 15,954,887
 Realized investment gains 988,216 1,671,285
 Investment services 22,071,555 15,534,331
 Other income 14,350,863 27,797,209
 Revenues 234,589,061 214,991,308
 Losses and expenses 205,982,914 195,092,113
 Income before income taxes 28,606,147 19,899,195
 Income taxes 8,138,739 5,512,383
 Net income $20,467,408 $14,386,812
 Fully diluted earnings per share
 Net operating income $1.32 $0.92
 Realized investment gains, after tax $0.05 $0.08
 Net income $1.37 $1.00
 Weighted average shares 13,366,335 13,807,854
 Wind and hail losses per share $0.34 $0.32
 Primary earnings per share $1.97 $1.39
 Dividends paid per common share $0.25 $0.21
 ALLIED GROUP, INC. SUMMARIZED CONSOLIDATED BALANCE SHEET
 6/30/93 12/31/92
 Assets
 Invested assets (market value
 of $582,937,147 and
 $479,340,712 555,067,203 $460,037,809
 Accounts receivable 61,124,894 54,017,464
 Securities held for sale 67,030,114 72,930,998
 Deferred policy acquisition
 costs 32,595,796 28,578,196
 Other assets 102,817,386 72,923,896
 Total assets $818,635,393 $688,488,363
 Liabilities
 Loss and loss settlement
 expenses $272,201,047 $227,971,575
 Unearned premiums 153,691,017 129,384,146
 Notes payable to
 nonaffiliates 79,082,060 58,155,394
 Notes payable to affiliates 6,219,130 8,387,221
 Guarantee of ESOP obligations 30,500,000 30,590,000
 Other liabilities 45,322,509 57,986,745
 Total liabilities 587,015,763 512,475,081
 Stockholders' equity 231,619,630 176,013,282
 Total liabilities and
 stockholders' equity $818,635,393 $688,488,363
 Number of shares outstanding
 Nonconvertible preferred
 stock 1,827,222 1,827,222
 ESOP convertible preferred
 stock 3,246,241 3,314,038
 Common stock 8,568,380 4,469,342
 Total shares outstanding 13,641,843 9,610,602
 Book value per share $16.54 $14.34
 Investment yield (percent) 7.3 7.6
 ALLIED GROUP, INC.
 SEGMENT INFORMATION
 Three Months Ended Six Months Ended
 6/30/93 6/30/92 6/30/93 6/30/92
 Revenues(a)
 Property-
 casualty $94,855,489 $79,537,392 $186,539,503 $156,435,756
 Excess &
 surplus lines 6,878,978 9,230,680 14,140,685 17,668,919
 Investment
 services 12,548,029 8,167,231 23,321,498 16,022,199
 Data processing 11,526,637 9,295,208 22,063,574 18,329,581
 Eliminations
 and other (5,994,287) 2,004,563 (11,476,199) 6,534,853
 Total $119,814,846 $108,235,074 $234,589,061 $214,991,308
 Income before
 income taxes(a)
 Property-
 casualty $10,791,304 $6,044,711 $22,516,220 $13,821,018
 Excess &
 surplus lines 851,388 866,952 1,671,834 2,440,952
 Investment
 services 1,469,499 1,588,734 3,435,715 2,791,998
 Data processing 710,492 613,582 1,116,930 1,468,524
 Eliminations
 and other(b) (288,016) (332,904) (134,552) (623,297)
 Total $13,534,667 $8,781,075 $28,606,147 $19,899,195
 6/30/93 12/31/92 6/30/92
 Assets
 Property-casualty $636,735,293 $520,683,163 $495,358,720
 Excess & surplus lines 89,703,981 78,100,417 75,020,489
 Investment services 117,159,617 114,863,466 87,273,946
 Data processing 14,865,942 13,905,685 12,738,588
 Eliminations and other (39,829,440) (39,064,368) (35,909,190)
 Total $818,635,393 $688,488,363 $634,482,553
 (a) Includes realized investment gains or losses.
 (b) Includes interest expense of $239,667 and $275,870 for the three months ended June 30, 1993 and 1992, respectively. Interest expense for the six months ended June 30, 1993 and 1992 was $495,769 and $584,672, respectively.
 ALLIED GROUP, INC. SUPPLEMENTAL INSURANCE INFORMATION
 Three Months Ended
 6/30/93 6/30/92
 Property-casualty segment
 results
 Net premiums written $91,158,822 $75,122,662
 Premiums earned $84,700,272 $70,979,845
 Loss & loss adjustment
 expenses 59,289,386 50,978,005
 Underwriting expenses 26,185,447 23,059,518
 Statutory underwriting loss (774,561) (3,057,678)
 GAAP adjustments 1,410,649 544,842
 GAAP underwriting gain (loss) 636,088 (2,512,836)
 Investment income excluding
 realized gains 8,588,957 7,160,005
 Realized investment gains 222,000 226,343
 Other income 1,344,259 1,171,199
 Income before income taxes 10,791,304 6,044,711
 GAAP combined ratio 99.2 103.5
 Wind and hail losses $5,032,004 $6,039,669
 Impact of wind and hail
 losses on combined ratio 5.9 8.5
 Excess & surplus lines
 segment results
 Net premiums written $6,321,244 $8,278,880
 Premiums earned $5,686,275 $7,998,580
 Loss & loss adjustment
 expenses 4,285,351 5,868,341
 Underwriting expenses 1,730,935 2,413,042
 Statutory underwriting loss (330,011) (282,803)
 GAAP adjustments (11,304) (82,345)
 GAAP underwriting loss (341,315) (365,148)
 Investment income excluding
 realized gains 1,195,892 1,204,897
 Realized investment gains
 (losses) (3,189) 27,203
 Income before income taxes $851,388 $866,952
 GAAP combined ratio 106.0 104.6
 Six Months Ended
 6/30/93 6/30/92
 Property-casualty segment
 results
 Net premiums written $184,800,755 $160,523,519
 Premiums earned $166,336,036 $139,217,155
 Loss & loss adjustment
 expenses 114,023,309 99,023,910
 Underwriting expenses 53,590,187 47,964,497
 Statutory underwriting loss (1,277,460) (7,771,252)
 GAAP adjustments 3,590,214 4,373,669
 GAAP underwriting gain (loss) 2,312,754 (3,397,583)
 Investment income excluding
 realized gains 16,622,303 13,643,346
 Realized investment gains 891,080 1,230,657
 Other income 2,690,083 2,344,598
 Income before income taxes $22,516,220 $13,821,018
 GAAP combined ratio 98.6 102.4
 Wind and hail losses $6,908,534 $6,767,536
 Impact of wind and hail
 losses on combined ratio 4.2 4.9
 Excess & surplus lines
 segment results
 Net premiums written $11,930,800 $15,826,490
 Premiums earned $11,642,725 $14,816,441
 Loss & loss adjustment
 expenses 8,821,929 10,755,578
 Underwriting expenses 3,487,550 4,828,659
 Statutory underwriting loss (666,754) (767,796)
 GAAP adjustments (159,372) 356,270
 GAAP underwriting loss (826,126) (411,526)
 Investment income excluding
 realized gains 2,400,824 2,411,850
 Realized investment gains
 (losses) 97,136 440,628
 Income before income taxes $1,671,834 $2,440,952
 GAAP combined ratio 107.1 102.8
 ALLIED GROUP, INC. PROPERTY-CASUALTY STATUTORY COMBINED RATIOS
 Six Months Ended
 6/30/93
 Premiums Earned Combined Ratio
 Statutory underwriting
 results by line
 Personal automobile $84,547,924 97.1
 Homeowners 24,617,783 104.1
 Personal lines 109,165,707 98.7
 Commercial automobile 9,931,746 94.6
 Workers' compensation 11,502,193 93.9
 Other property/liability 34,670,283 98.9
 Other lines 1,066,107 53.4
 Commercial lines 57,170,329 96.2
 Total $166,336,036 98.0
 Six Months Ended
 6/30/92
 Premiums Earned Combined Ratio
 Statutory underwriting
 results by line
 Personal automobile $72,387,180 99.5
 Homeowners 20,195,248 107.6
 Personal lines 92,582,428 101.3
 Commercial automobile 8,751,494 97.5
 Workers' compensation 8,791,371 105.1
 Other property/liability 28,030,820 102.3
 Other lines 1,061,042 54.9
 Commercial lines 46,634,727 100.8
 Total $139,217,155 101.3
 Loss ratio 57.1 58.4
 Loss adjustment expense ratio 11.5 12.7
 Underwriting expense ratio 29.0 29.9
 Dividend ratio 0.4 0.3
 Statutory combined ratio 98.0 101.3
 -0- 7/30/93
 /CONTACT: Jim Shaffer of ALLIED Group, 515-280-4326/
 (ALGR)


CO: ALLIED Group, Inc. ST: Iowa IN: INS SU: ERN

DB -- MN001 --
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