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BROAD INC. REPORTS 26 PERCENT INCREASE IN FIRST QUARTER RESULTS

 BROAD INC. REPORTS 26 PERCENT INCREASE IN FIRST QUARTER RESULTS
 LOS ANGELES, Jan. 29 /PRNewswire/ -- Broad Inc. (NYSE: BRO), a financial services company, announced a 26 percent increase in first quarter earnings per share, today reporting record net income for the quarter ended Dec. 31, 1991 of $14.4 million or $.39 per share, compared with $9.7 million or $.31 per share a year ago.
 The company's net operating income for the quarter, after taxes but before net realized investment losses, was $23.4 million or $.63 per share, compared with $19.6 million or $.63 per share reported a year earlier.
 Chief Executive Officer Eli Broad said, "The improvements in the December quarter reflect a 19 percent rise in fee-based income, a reduction in general and administrative costs, and higher than anticipated net investment income largely due to added income from partnerships."
 He noted that average shares outstanding were 6 million higher in the 1992 quarter primarily due to the issuance of mandatory conversion preferred stock in October 1991.
 Citing continued improvement in the company's investment portfolio, Broad also reported that the company sold more than $200 million of non-investment grade bonds and more than $350 million of its senior secured bank loans during the quarter.
 Net realized investment gains from the sale of securities partially offset $31 million of permanent impairment writedowns taken in response to the current recessionary environment. At quarter-end, non-investment grade bonds represented only 4 percent of the company's total assets. At Dec. 31, 1991, the market value of the company's bond portfolio exceeded its amortized cost by approximately $56 million.
 "Though investment spreads will undoubtedly be narrower in subsequent quarters of 1992, we expect significant improvement in bottom-line performance for our 1992 fiscal year," Broad said. "With strong results in the December quarter, the company remains on target to surpass by a considerable margin the $1.32 net income per share earned in the fiscal year ended Sept. 30, 1991."
 Broad Inc. is the parent of SunAmerica Corp. and its subsidst-growing pre-retirement market. At Dec. 31, 1991, it had assets owned or under management exceeding $13.5 billion and a book value of $13.26 per share.
 BROAD INC.
 Condensed Consolidated Income Statement
 (In thousands except per share)
 (Unaudited)
 Three Months Ended Dec. 31,
 1991 1990
 Investment income $185,155 $190,945
 Interest expense (138,164) (146,038)
 Dividends paid on preferred
 stock of SunAmerica
 Corp. (1,301) (1,402)
 Net investment income 45,690 43,505
 Net realized investment
 losses (13,653) (15,091)
 Fee income:
 Variable annuity fees 14,042 12,160
 Asset management fees 5,357 4,040
 Net retained commissions 4,610 3,252
 Trust fees 2,759 3,024
 Total fee income 26,768 22,476
 Other income and expenses:
 Surrender charges 4,864 4,816
 General and administrative
 expenses (29,472) (31,714)
 Amortization of deferred
 acquisition costs (11,971) (8,858)
 Other, net 604 1,134
 Total other income
 and expenses (35,975) (34,622)
 Pretax income 22,830 16,268
 Income tax expense (8,400) (6,600)
 Net income $14,430 $9,668
 Per common share $0.39 $0.31
 Average common shares
 outstanding 37,398 31,355
 -0- 1/29/92
 /CONTACT: Jana Waring Greer, senior VP of Broad, 310-445-6352 or (before 11 a.m. EST) 818-705-8129/
 (BRO) CO: Broad Inc. ST: California IN: FIN SU: ERN


KJ-EH -- LA005 -- 4575 01/29/92 09:02 EST
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Date:Jan 29, 1992
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