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BROAD INC. ANNOUNCES 29 PERCENT QUARTERLY EARNINGS GROWTH; SIX MONTH SALES MORE THAN DOUBLE TO RECORD $1.2 BILLION

 BROAD INC. ANNOUNCES 29 PERCENT QUARTERLY EARNINGS GROWTH;
 SIX MONTH SALES MORE THAN DOUBLE TO RECORD $1.2 BILLION
 LOS ANGELES, April 28 /PRNewswire/ -- Broad Inc. (NYSE: BRO) today reported second quarter net income of $15.6 million or $.40 per share, up from $10.0 million or $.31 per share in the quarter ended March 31, 1991. Bucking the trend of many in the financial services industry, the company's results reflect a 29 percent increase in net income per share and the highest quarterly earnings since its strategic corporate restructuring in March 1989.
 For the six months ended March 31, the company earned net income of $30.1 million or $.79 per share, significantly exceeding the $19.6 million or $.62 per share reported in 1991.
 Chairman and Chief Executive Officer Eli Broad noted that, in addition to record earnings, "Sales of fixed and variable annuities, mutual funds and guaranteed investment contracts topped $1.2 billion for the first half of the fiscal year, more than doubling the $600 million level of a year ago."
 Reflecting higher sales of variable annuities and mutual funds during the past year, the company's quarterly fee income grew by 26 percent to $27.8 million from $22.1 million a year earlier. Net investment income grew by 10 percent to $42.1 million from $38.3 million in 1991.
 "The improvements in fee and spread income, coupled with only a 4 percent increase in general operating expenses and a gain from the retirement of subordinated debt, contributed to net income before net realized investment losses of $24.8 million or $.64 per share, a sharp increase from the $17.1 million or $.54 per share reported in 1991. First half net income before net realized investment losses rose to $48.2 million or $1.27 per share, up from $36.7 million or $1.17 per share last year," Broad said.
 Average shares outstanding in fiscal 1992 were approximately 7.1 million higher for the quarter and 6.5 million higher for the six months, primarily due to the issuance of mandatory conversion preferred stock in October 1992.
 Broad Inc. is the parent of SunAmerica Corp. and its subsidiaries, which market fixed and variable annuities, mutual funds and retirement trust services to the fast-growing pre-retirement market. At March 31, 1991, it had approximately $14 billion of assets owned or under management and a book value of $13.79 per share.
 BROAD INC.
 Condensed Consolidated Income Statement
 (In thousands except per share)
 (Unaudited)
 Three Months Ended March 31,
 1992 1991
 Investment income $180,335 $184,149
 Interest expense (137,026) (144,537)
 Dividends paid on preferred
 stock of SunAmerica
 Corp. (1,254) (1,357)
 Net investment income 42,055 38,255
 Net realized 11,066
 Asset management fees 6,301 3,913
 Net retained commisssion 4,819 4,066
 Trust fees 2,701 3,017
 Total fee income 27,837 22,062
 Other income and expenses:
 Surrender charges 3,878 5,836
 General and administrative
 expenses (30,800) (29,521)
 Amortization of deferred
 acquisition costs (12,014) (9,837)
 Other, net 4,774 464
 Total other income and
 expenses (34,162) (33,058)
 Pretax income 21,843 16,511
 Income tax expense (6,200) (6,550)
 Net income $15,643 $9,961
 Per common share $0.40 $0.31
 Average common shares
 outstanding 38,860 31,721
 Six Months Ended March 31,
 1992 1991
 Investment income $365,490 $375,094
 Interest expense (275,190) (290,575)
 Dividends paid on preferred
 stock of SunAmerica Corp. (2,555) (2,759)
 Net investment income 87,745 81,760
 Net realized investment
 losses (27,540) (25,839)
 Fee income:
 Variable annuity fees 28,058 23,226
 Asset management fees 11,658 7,953
 Net retained commissions 9,429 7,318
 Trust fees 5,460 6,041
 Total fee income 54,605 44,538
 Other income and expenses:
 Surrender charges 8,742 10,652
 General and administrative
 expenses (60,272) (61,235)
 Amortization of deferred
 acquisition costs (23,985) (18,695)
 Other, net 5,378 1,598
 Total other income and
 expenses (70,137) (67,680)
 Pretax income 44,673 32,779
 Income tax expense (14,600) (13,150)
 Net income $30,073 $19,629
 Per common share $0.79 $0.62
 Average common shares
 outstanding 37,979 31,454
 -0- 4/28/92
 /CONTACT: Jana Waring Greer, senior VP of Broad, 310-445-6532/
 (BRO) CO: Broad Inc. ST: California IN: SU: ERN


AL-CH -- LA023 -- 3841 04/28/92 13:08 EDT
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Date:Apr 28, 1992
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