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CITIZENS REPORTS IMPROVED RESULTS AND SUSPENSION OF REGULAR QUARTERLY CASH DIVIDEND

 CITIZENS REPORTS IMPROVED RESULTS AND SUSPENSION
 OF REGULAR QUARTERLY CASH DIVIDEND
 RED WING, Minn., July 27 /PRNewswire/ -- Citizens Security Group Inc. (NASDAQ: CSGI) today reported operating results for the second quarter and six months ended June 30, 1992.
 "We are pleased to report a substantial increase in net income for the first six months of 1992 compared to the first six months of 1991," said Spencer A. Broughton, chairman and CEO. "Net income was $372,786 or $.15 per share for the first six months of 1992. This compares to net income of $180,563 or $.07 per share earned in last year's first six months. We have experienced a 5.0 percent decrease in our loss ratio (loss and loss adjustment expenses incurred to premiums earned) and a 1.2 percent decrease in our expense ratio (operating expenses to premium earned) for the six months of 1992 compared to 1991.
 "Our book value per share increased to $4.47 at June 30, 1992 from $4.36 at December 31, 1991. Our balance sheet remains very strong with high grade investments and no junk bonds or real estate investments. The market value of our investments exceeds the book value in our balance sheet," said Broughton.
 Premiums earned were $12,197,620 for the six months of 1992 as compared to $11,668,337 for the same period in 1991. Realized losses on investments were $43,612 compared to realized gains of $311,324 in 1991. Six month revenues increased to $13,356,041 in 1991 from $13,209,037 in the same period a year ago. The loss ratio was 68.8 percent for the six months of 1992 compared to 73.8 percent for the six months of 1991.
 Net income was $148,579 or $.06 per share for the quarter compared to net income of $41,152 or $.02 per share in last year's second quarter. Second quarter premiums earned were $6,109,655 in 1992 as compared to $5,919,702 for the same period in 1991. Realized gains on investments were $124,805 in the second quarter of 1992 compared to realized gains of $231,607 in 1991. Second quarter revenues totaled $6,859,695 compared to $6,817,421 reported in the same period a year ago. The loss ratio was 73.7 percent for the second quarter of 1992 compared to 78.0 percent in the second quarter of 1991.
 CSGI also announced that its board of directors has determined it necessary to suspend payment of the company's regular quarterly cash dividend of $.02 per share for the foreseeable future. "A suspension of the quarterly cash dividend to shareholders has become necessary because of recent changes in state insurance statutes previously discussed in our annual report to shareholders that restrict the ability of the company's insurance subsidiaries to pay dividends to the company," said Broughton. "As a holding company, CSGI relied on these dividends for debt service and for cash dividends to shareholders. The new state statutes are more restrictive and thus reduced the amount of cash available to the company which necessitated a suspension of our regular quarterly cash dividend. The dividend suspension allows the company to maintain more capital at the subsidiary level to support future growth."
 Citizens Security Group Inc., which is a holding company engaged in the preferred risk property and casualty business, is part of an insurance group which also includes Citizens Security Mutual Insurance Company, Citizens Fund Insurance Company and Insurance Company of Ohio.
 Citizens Security Group Inc. common stock trades on the national over-the-counter market under the NASDAQ symbol CSGI.
 CITIZENS SECURITY GROUP INC.
 CONDENSED, CONSOLIDATED STATEMENT OF EARNINGS
 Three Months Ended Six Months Ended
 6/30/92 6/30/91 6/30/92 6/30/91
 Revenues:
 Premiums earned $6,109,655 $5,919,702 $12,197,620 $11,668,337
 Investment income,
 less related expenses 533,845 587,562 1,026,436 1,070,279
 Realized gains (losses)
 on investments 124,805 231,607 (43,612) 311,324
 Other 91,390 78,550 175,597 159,097
 Total revenues 6,859,695 6,817,421 13,356,041 13,209,037
 Losses and expenses:
 Losses and loss
 adjustment expenses 4,504,086 4,619,562 8,397,730 8,610,572
 Operating expenses 2,183,530 2,205,707 4,511,025 4,455,602
 Total losses and
 expenses 6,687,616 6,825,269 12,908,755 13,066,174
 Income (loss) before
 income taxes 172,079 (7,848) 447,286 142,863
 Income tax expense
 (benefit) 23,500 (49,000) 74,500 (37,700)
 Net income $148,579 $41,152 $372,786 $180,563
 Weighted average shares
 outstanding 2,562,495 2,562,495 2,562,495 2,562,495
 Earnings per share $.06 $.02 $.15 $.07
 -0- 7/27/92
 /CONTACT: Charles W. Bergner or Mary B. Plein, 612-388-7171/
 (CSGI) CO: Citizens Security Group Inc. ST: Minnesota IN: FIN INS SU: ERN


KH -- MN011 -- 3577 07/27/92 14:00 EDT
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Date:Jul 27, 1992
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