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BROAD INC. REPORTS 62 PERCENT INCREASE IN FIRST QUARTER NET INCOME PER SHARE

 LOS ANGELES, Jan. 25 /PRNewswire/ -- Broad Inc. (NYSE: BRO), today reported net income for its first quarter ended Dec. 31, 1992, of $27.1 million, or $.63 per share, up 62 percent on a per share basis from the $14.4 million, or $.39 per share, reported for the quarter a year ago.
 Chairman and Chief Executive Officer Eli Broad reported that the company's first quarter after-tax return on average equity increased to 17.2 percent in fiscal 1993 from 12.6 percent in fiscal 1992.
 "The improvements in the recent quarter largely reflect a $4.5 million rise in fee income, a $2.4 million increase in net investment income, an $11.0 million decrease in net realized investment losses and virtually flat general and administrative expenses, compared with results a year ago," he said.
 "The 17 percent increase to $31.3 million in first quarter fee income is indicative of our growing base of variable annuities and mutual funds, which now represent 44 percent of our client funds under management," said Mr. Broad. "Net investment income showed a more modest increase, up 5 percent to $49.2 million, primarily due to a higher level of lower-yielding cash and short-term investments, which rose to $1.7 billion by Dec. 31, 1992."
 On an operating basis, first quarter after-tax earnings before net realized investment losses rose to $29.6 million, or $.70 per share, in fiscal 1993 compared with $24.1 million, or $.65 per share, in fiscal 1992. Income before net realized investment losses is commonly used by investment analysts to describe performance in the financial services industry.
 Citing continued improvement in asset quality, the company reported that, during the December quarter, its non-investment grade bond holdings were further reduced to less that $600 million, or approximately 4 percent of total assets. At Dec. 31, 1991, the market value of its aggregate bond portfolio exceeded amortized cost by approximately $55 million.
 At quarter end, the net carrying value of defaulted investments (including bonds, senior secured loans and mortgages) dropped to $71 million, or 0.7 percent of total invested assets, assuming the application of unallocated reserves. This marked the lowest level of net defaults since March of 1990.
 Mr. Broad also reported that, during the quarter, total assets owned or under management passed $16 billion for the first time. In addition, the company had approximately $4.7 billion of assets under custody at its trust company at quarter end.
 Broad Inc. is a financial services company which specializes in selling tax-deferred long-term savings products and investments to the expanding pre-retirement market. On Jan. 29, its shareholders will vote on a proposal to change the company's name to SunAmerica Inc. The name change is designed to provide consistency between the parent company name and the registered service mark "SunAmerica" which is used to market the company's annuities, mutual funds, trust services and guaranteed investment contracts.
 BROAD INC.
 Condensed Consolidated Income Statement
 (Unaudited)
 Three Months Ended Dec. 31,
 1992 1991
 Investment income $179,441,000 $186,228,000
 Interest expense (129,384,000) (138,164,000)
 Dividends paid on preferred
 stock of a subsidiary (886,000) (1,301,000)
 Net investment income 49,171,000 46,763,000
 Net realized investment
 losses (3,748,000) (14,726,000)
 Fee income:
 Variable annuity fees 16,134,000 14,042,000
 Asset management fees 7,843,000 5,357,000
 Net retained commissions 4,537,000 4,610,000
 Trust fees 2,791,000 2,759,000
 Total fee income 31,305,000 26,768,000
 Other income and expenses:
 Surrender charges 2,608,000 4,864,000
 General and administrative
 expenses (29,754,000) (29,472,000)
 Amortization of deferred
 acquisition costs (12,674,000) (11,971,000)
 Other, net 1,611,000 604,000
 Total other income and
 expenses (38,209,000) (35,975,000)
 Pre-tax income 38,519,000 22,830,000
 Income tax expense (11,400,000) (8,400,000)
 Net income $27,119,000 $14,430,000
 Per common share $0.63 $0.39
 Average common shares
 outstanding 37,873,000 37,398,000
 -0- 1/25/93
 /CONTACT: Jana Waring Greer, senior VP of Broad, 310-445-6532, or (before 8 a.m. PST) 818-705-8129/
 (BRO)


CO: Broad Inc. ST: California IN: FIN INS SU: ERN

JB-KJ -- LA009 -- 8281 01/25/93 09:01 EST
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Publication:PR Newswire
Date:Jan 25, 1993
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