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AMERICAN INCOME HOLDING, INC. REPORTS NET INCOME

 WILMINGTON, Del., Oct. 21 /PRNewswire/ -- American Income Holding, Inc. (NYSE: AIH) reported net income of $24.1 million, or $1.50 per share, for the nine months ended Sept. 30, 1993, including $7.2 million ($0.45 per share) for the quarter ended Sept. 30, 1993. For the comparable periods in 1992, the net income (before extraordinary charge) was $23.6 million ($1.58 per share) and $9.4 million ($0.59 per share), respectively.
 The effective Federal income tax rate for the quarter ended Sept. 30, 1993 was 49.0 percent as a result of the retroactive increase in the Federal income tax rate to 35.0 percent enacted during the quarter. The tax expense in the quarter included $0.3 million ($0.02 per share) in current tax expense for the retroactive impact of the increased tax rate for the period of January 1 through June 30, 1993 and $1.7 million ($0.10 per share) in deferred tax expense for the adjustment to the net deferred tax liability as required by SFAS 109. The adjustment to the net deferred tax liability increased the effective tax rate to 39.6 percent for the nine months ended Sept. 30, 1993.
 For the quarter ended Sept. 30, 1993, "operating earnings per share" (net income excluding realized investment gains/losses and the tax effect thereof) were $0.46 as compared to $0.59 for the third quarter of 1992. However, this comparison is not meaningful since the entire effect of the increase in the Federal income tax rate (described above) burdens the third quarter of 1993. If the Federal income tax rate had remained at 34.0 percent the operating earnings for the 1993 third quarter would have been $0.59 per share. In addition, the operating, earnings for the third quarter and the first nine months of 1992 were benefited by unusually high investment income due to yield adjustments of $1.5 million ($0.06 pre share, after tax) and $3.1 million ($0.14 per share, after tax), respectively, on certain collateralized mortgage backed securities. Due to the 1993 tax increase discussed above, year- to-date operating earnings per share decreased 1.9 percent to $1.54 for 1993 from $1.57 earned in the nine months ended Sept. 30, 1992.
 For the third quarter of 1993, first year life premiums were $6.6 million, up 21.2 percent over the third quarter of 1992. First year life premiums were $18.4 million for the nine months ended Sept. 30, 1993, up 16.0 percent over thea?rable period in 1992. This increase in first year life premiums reflects the significant expansion of the company's sales force from 912 agents at Jan. 1, 1993 to 1,083 agents as of Sept. 30, 1993. Life insurance in force increased 3.6 percent to $7.56 billion at Sept. 30, 1993 from $7.30 billion at June 30, 1993.
 The company completed its initial public offering of commons stock on March 6, 1992, and its recapitalization on March 13, 1992. Assuming both the offering and recapitalization occurred on the first day of the period, pro forma net income before extraordinary items would have been $24.8 million ($1.55 per share) for the nine months ended Sept. 30, 1992.
 American Income Holding, Inc. is an insurance holding company engaged through its subsidiary, American Income life Insurance Company in the marketing, writing and issuing of individual life insurance and fixed benefit accident and health insurance to members of labor unions and credit unions.
 AMERICAN INCOME HOLDING, INC.
 Selected Consolidated Data
 (Dollars in thousands, except per share data)
 Periods ended Three Months Nine Months
 Sept. 30 1993 1992 1993 1992
 (Restated) (Restated)
 Life-First Year
 Premiums 6,552 5,404 18,428 15,885
 Life-Renewal Premiums 22,519 20,355 65,646 60,086
 Total-Life Premiums 29,071 25,759 84,074 75,971
 A&H-First Year Premiums 2,383 2,430 5,880 6,663
 A&H-Renewal Premiums 7,444 6,951 22,380 20,592
 Total-A&H Premiums 9,827 9,381 28,260 27,255
 Total Premium Revenue 38,898 35,140 112,334 103,226
 Net Investment Income 7,985 9,716 24,258 27,612
 Total Revenues 47,135 44,753 137,377 131,244
 Net Earnings Applicable
 to Common Stock Before
 Extraordinary Charge 7,185 9,443 24,113 23,553
 Extraordinary Charge,
 Net of Tax -- -- -- 4,885
 Net Income Applicable to
 Common Stock After
 Extraordinary Charge 7,185 9,443 24,113 18,668
 Total Assets 664,238 618,850 664,238 618,850
 Total Debt 71,500 87,200 71,500 87,200
 Common Shareholders'
 Equity 183,792 152,718 183,792 152,718
 Per Share:
 Net Income Applicable to
 Common Stock Before
 Extraordinary Charge $0.45 $0.59 $1.50 $1.58
 Extraordinary Charge,
 Net of Tax -- -- -- ($0.33)
 Net Income Applicable
 to Common Stock After
 Extraordinary Charge $ 0.45 $0.59 $ 1.50 $1.25
 "Operating Earnings" $ 0.46 $0.59 $ 1.54 $1.57
 Book Value per
 Common Share $11.68 $9.89 $11.68 $9.89
 Weighted average
 shares outstanding 16,080,777 16,025,224 16,075,754 14,949,684
 -0- 10/21/93
 /CONTACT: Mark E. Pape, executive vice president and chief financial officer, American Income Holding, Inc., 817/751-8650.
 (AIH)


CO: American Income Holding, Inc. ST: Delaware IN: INS SU: ERN

TS -- NY056 -- 5160 10/21/93 11:44 EDT
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Publication:PR Newswire
Date:Oct 21, 1993
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