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AMERICAN RELIANCE GROUP REPORTS EARNINGS FOR YEAR 1991

 AMERICAN RELIANCE GROUP REPORTS EARNINGS FOR YEAR 1991
 LAWRENCEVILLE, N.J., Feb. 18 /PRNewswire/ -- American Reliance


Group, Inc. (AMEX: ARI) today reported results for the fourth quarter and year ended Dec. 31, 1991.
 Total revenues for the quarter were $23,886,000 compared to $23,149,000 for the fourth quarter last year. Net income was $2,425,000 or 91 cents per share, compared to $1,685,000 or 66 cents per share in the fourth quarter a year ago. The 1991 fourth quarter included $1,281,000 in realized investment gains, compared to $44,000 for the 1990 fourth quarter.
 Revenues for the year were $89,883,000 compared to $85,757,000 for 1990. Net income was $6,632,000 or $2.49 per share, compared to $6,784,000 or $2.66 per share in 1990. The year of 1991 included $2,598,000 in realized investment gains, compared to $442,000 for 1990.
 The charges to operations for the New Jersey Fair Automobile Insurance Reform Act (FAIRA) were $675,000 for the fourth quarter of 1991, compared with $573,000 for the fourth quarter a year ago. For the year, FAIRA charges were $2,619,000 compared to $1,294,000 for 1990. Book value per share at Dec. 31, 1991, increased to $21.99 from $19.14 at Dec. 31, 1990.
 The statutory combined ratio for the fourth quarter was 106.2 percent compared to 105.0 percent a year earlier. The combined ratio for the year was 104.7 percent compared to 104.4 percent for 1990. FAIRA added more than 3 points to the ratios in each period.
 Commenting on the results, Dennis M. Bandish, senior vice president and chief financial officer, said, "Record investment gains realized in 1991 favorably impacted earnings. Considering the recession and the continued competitive pricing in the insurance market, we are pleased that the combined ratio deteriorated only slightly in 1991.
 "As previously announced on January 22, 1992, our plan of reorganization, which would transfer all of our New Jersey personal automobile insurance from the company to its parent mutual, was approved by the state regulators. Under the plan, the business transferred would then be excluded from the reinsurance pooling arrangement. At that time, we announced that this transaction would be effective on October 1, 1991, subject to the company's ability to complete certain administrative procedures. Based on the approval of certain licenses, we find it necessary to make the plan effective on January 1, 1992.
 "Had this plan been implemented on December 31, 1991, book value per share would have increased from $21.99 to $23.19. For 1992, as a result of this transaction, we expect earnings per share to increase by approximately $.60."
 American Reliance Group, Inc., a regional property and casualty insurance holding company, specializes in providing insurance coverage for small to medium-size businesses and individuals in rural and suburban locations.
 AMERICAN RELIANCE GROUP, INC.
 (Amounts in thousands, except per-share data)
 Periods ended Three months Year
 Dec. 31 1991 1990 1991 1990
 Premiums written $19,532 $20,059 $76,621 $77,966
 Premiums earned 19,381 20,226 75,525 74,784
 Net investment income 2,884 2,511 10,409 9,122
 Realized investment gains 1,281 44 2,598 442
 Total revenues 23,886 23,149 89,883 85,757
 Income before tax 2,694 2,255 8,552 8,676
 Net income 2,425 1,685 6,632 6,784
 Earnings per share:
 Primary $.91 $.66 $2.49 $2.66
 Fully diluted .90 .66 2.47 2.66
 /delval/
 -0- 2/18/92
 /CONTACT: Bruce W. Herrick, chairman and president, or Dennis M. Bandish, senior vp-finance of American Reliance, 609-896-1921/
 (ARI) CO: American Reliance Group, Inc. ST: New Jersey IN: INS SU: ERN


KA-MP -- PH007 -- 9802 02/18/92 09:52 EST
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Date:Feb 18, 1992
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