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CITIZENS SECURITY GROUP INC. REPORTS FAVORABLE NINE MONTH EARNINGS

 RED WING, Minn., Oct. 21 /PRNewswire/ -- CITIZENS Security Group Inc. (NASDAQ: CSGI) today announced operating results for the period ended Sept. 30, 1993. Net income for the nine months was a record $1,063,987, or $.37 per share, compared to $642,330, or $.25 per share, for the same period in 1992. Realized gains on investments were $499,638 compared to $25,389 in 1992. Nine month revenues increased to $20,359,887 from $20,012,187 in the prior period a year ago.
 Spencer A. Broughton, chairman and chief executive officer, commented, "We are extremely pleased to report a substantial increase in net income for the nine months of 1993 compared to 1992. Our direct premiums written for the first i?ne months of 1993 rose 6.5 percent over 1992."
 The loss ratio (loss and loss adjustment expenses incurred to premiums earned) was 69.5 percent for the first nine months of 1993 compared to 68.4 percent in 1992. The expense ratio continued to improve as a result of past actions executed to decrease expenses. The company experienced a $38,000 tax benefit as a result of the implementation of Financial Accounting Standard No. 109.
 For the third quarter, net income totaled $122,705, or $.05 per share, compared to $269,544, or $.10 per share, in last year's third quarter. Revenues continued to increase to $6,916,321 from $6,656,146 in the third quarter a year ago. The company experienced storm losses during 1993, which led to an increase in the loss ratio to 73.7 percent for the third quarter compared to 67.5 percent for the same period in 1992. Broughton stated, "In the geographic region where our companies operate, most weather-related claims historically occur during the period from May to September."
 CITIZENS Security Group Inc. is a holding company owning subsidiaries -- Citizens Fund Insurance Company and Insurance Company of Ohio -- engaged in the preferred risk property and casualty business conducted in seven states, principally in the Upper Midwest. The common stock of the company is traded on the NASDAQ Small-Cap Market under the symbol "CSGI."
 CITIZENS SECURITY GROUP INC.
 CONDENSED, CONSOLIDATED STATEMENT OF EARNINGS
 Three Months Ended Nine Months Ended
 9/30/93 9/30/92 9/30/93 9/30/92
 Revenues:
 Premiums earned $6,285,619 $6,042,629 $18,102,851 $18,240,249
 Investment income, less
 related expenses 470,435 451,483 1,462,271 1,477,919
 Realized gains on
 investments 60,016 69,001 499,638 25,389
 Other 100,251 93,033 295,127 268,630
 Total revenues 6,916,321 6,656,146 20,359,887 20,012,187
 Losses and expenses:
 Losses and loss
 adjustment expenses 4,629,649 4,076,857 12,577,347 12,474,587
 Operating expenses 2,164,967 2,234,245 6,390,553 6,745,270
 Total losses and
 expenses 6,794,616 6,311,102 18,967,900 19,219,857
 Income before income
 taxes 121,705 345,044 1,391,987 792,330
 Income tax expense
 (benefit) (1,000) 75,500 366,000 150,000
 Net income from
 continuing operations 122,705 269,544 1,025,987 642,330
 Cumulative FAS 109
 adjustment -- -- 38,000 --
 Net income $122,705 $269,544 $1,063,987 $642,330
 Weighted average shares
 and equivalent shares
 outstanding 2,915,286 2,562,495 2,914,202 2,562,495
 Earnings per share $.05 $.10 $.37 $.25
 -0- 10/21/93
 /CONTACT: Mary B. Plein of Citizens Security Group, 612-388-7171, ext. 255/
 (CSGI)


CO: CITIZENS Security Group Inc. ST: Minnesota IN: INS SU: ERN

CP-DS -- MN028 -- 5400 10/21/93 15:51 EDT
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Publication:PR Newswire
Date:Oct 21, 1993
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