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DELPHI FINANCIAL GROUP, INC. REPORTS SECOND QUARTER EARNINGS

 WILMINGTON, Del., July 26 /PRNewswire/ -- Delphi Financial Group, Inc. (NASDAQ: DLFI) today announced second quarter net income of $1.25 per share or $12.9 million.
 These record results are double the 1992 second quarter net income of $.61 per share.
 Total revenues were $104.4 million for the three months ended June 30, 1993, a 26 percent increase over revenues of $82.7 million in the comparable period in 1992. Year-to-date revenues were $203.5 million for the six months ended June 30, 1993, an increase of 24 percent over revenues of $163.5 million in the comparable period in 1992. Year-to-date earnings before extraordinary items and accounting changes were $2.28 per share, more than double the $.96 per share earnings in the comparable period in 1992.
 Insurance premiums and policyholder fees for the three months ended June 30, 1993, were $57.1 million, a 20 percent increase, compared to $47.4 million in 1992. The loss ratio in the group lines remained relatively unchanged from earlier quarters. Net investment income increased 26 percent to $43.8 million in the second quarter of 1993.
 Robert Rosenkranz, Chairman and Chief Executive Officer, said, "Delphi's results and recently announced recapitalization plan evidence our commitment to enhance shareholder value. Delphi's key financial indicators include trailing twelve month earnings of $34.8 million ($3.42 per share), which represent a return on equity of 31%. Interest coverage on a trailing twelve month basis has improved to 4 times, in part due to the refinancing of our senior debt in the first quarter of 1993. Our investment portfolio contains no real estate exposure and better than 97 percent of the bond portfolio is rated investment grade. Shareholders' equity exceeded $150 million as of June 30, 1993, a compound growth rate of 40 percent over Delphi's five and one-half year history. Book value per share grew at a compound rate of 38 percent over the same period to $14.76 on a fully diluted basis."
 In the second quarter, the Company announced a recapitalization plan designed to increase shareholders' equity, reduce leverage, decrease interest expense and increase the liquidity of the Company's Class A Common Stock. On a pro forma basis, the plan reduces the Company's interest expense from about $20 million to $12 million annually.
 Delphi Financial Group, Inc. is an insurance holding company that underwrites, nationally, through its principal subsidiary, Reliance Standard Life Insurance Company, a portfolio of life, long-term disability and personal accident insurance, targeted principally to the employee benefits market. It also operates an asset accumulation business, growing primarily through wholesale transactions and emphasizing intensive investment management. Delphi Financial Group, Inc.'s common stock (DLFI) is quoted through the NASDAQ National Market System.
 DELPHI FINANCIAL GROUP, INC.
 Consolidated Statements Of Income
 (Unaudited; in thousands except per share data)
 Periods ended Three Months Six Months 12 Months
 6/30/93 6/30/92 6/30/93 6/30/92 12/31/92 12/31/91
 Revenue:
 Insurance premium and
 policyholder fees:
 Group insurance $50,355 $41,600 $96,981 $82,793 $178,737 $154,316
 Asset accumulation
 products 1,299 550 1,814 1,207 3,086 8,020
 Individual products 5,468 5,287 10,547 10,388 21,065 18,063
 Total 57,122 47,437 109,342 94,388 202,888 180,399
 Net investment
 income 43,828 34,804 85,476 67,013 133,515 133,075
 Net realized
 investment gains 3,455 477 8,643 2,080 19,115 19,267
 Total 104,405 82,718 203,461 163,481 355,518 332,741
 Benefits and Expenses:
 Benefits, claims
 and interest
 credited to
 policyholders 59,370 50,363 116,774 103,060 215,643 217,444
 Amortization of
 cost of business
 acquired 6,714 4,702 13,529 8,758 29,421 19,954
 Other expenses 14,149 13,311 27,991 26,226 53,352 49,198
 Total 80,233 68,376 158,294 138,044 298,416 286,596
 Operating income
 before interest
 & taxes 24,172 14,342 45,167 25,437 57,102 46,145
 Interest expense 4,686 5,120 9,684 10,244 19,949 22,160
 Income taxes 6,625 3,135 12,064 5,046 12,513 7,195
 Income before
 extraordinary gains
 (losses) & cumulative
 effect of a change in
 accounting
 principle 12,861 6,087 23,419 10,147 24,640 16,790
 Extraordinary gains
 (losses) on early
 extinguishment
 of debt --- 4 (2,464) 253 (387) ---
 Cumulative effect
 of a change
 in accounting
 principle --- --- --- (594) (594) ---
 Net income $12,861 $6,091 $20,955 $9,806 $23,659 $16,790
 Income before
 extraordinary gains
 (losses) & cumulative
 effect of a change
 in accounting
 principle $1.25 $.61 $2.28 $.96 $2.38 $1.42
 Net income 1.25 .61 2.04 .93 2.29 1.42
 Weighted average
 shares
 outstanding 10,283 10,006 10,258 10,534 10,351 11,835
 Book value,
 period end $15.61 $11.91 $15.61 $11.91 $13.39 $11.97
 Fully diluted book
 value assuming
 exercise of options
 & warrants $14.76 $11.37 $14.76 $11.37 $12.67 $9.62
 /delval/
 -0- 7/26/93
 /CONTACT: Gerald R. Roop, director, Finance, of Delphi Financial, 215-787-4274/
 (DLFI) CO: Delphi Financial Group, Inc. ST: Delaware IN: INS SU: ERN


CC -- PH029 -- 5917 07/26/93 17:17 EDT
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Date:Jul 26, 1993
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