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FINANCIAL GUARANTY REPORTS OUTSTANDING FIRST QUARTER RESULTS

 NEW YORK, April 15 /PRNewswire/ -- Financial Guaranty Insurance company today reported exceptional first quarter financial results with a 35 percent gain in net income, a 41 percent increase in earned premiums and a 45 percent rise in total revenues.
 Financial Guaranty's net income for the first three months of 1993 was $44.7 million on total revenues of $72.6 million compared to 1992 first quarter net income of $33.1 million on total revenues of $49.9 million. All earnings are stated on a GAAP basis unless otherwise noted.
 The company also reported a 14 percent gain in net premiums written of $52.5 million as of March 31, 1993 compared to $46.1 million for the first three months of 1992. Earned premiums of $34.6 million for the quarter ended March 31, 1993 included $10.3 million attributable to a high level of bond calls and refundings compared to total earned premiums of $24.6 million for the first quarter of 1992, including $3.6 million attributable to bond calls and refundings.
 Financial Guaranty's statutory capital base, comprised of capital and surplus and the contingency reserve totalled $874.0 million as of March 31, 1993 an increase of $59.4 million from a total of $814.6 million at Dec. 31, 1992. The significant increase in FGIC's capital base is in part attributable to a $21.9 million capital contribution made from FGIC Corporation at the direction of its parent, GE Capital, as a result of a 1 percent ownership interest acquired in early 1993 by The Sumitomo Marine and Fire Insurance Company, Limited, one of Japan's leading insurers. FGIC's statutory policyholders' reserves, which include capital and surplus, loss and loss adjustment expense reserves, the contingency reserve, and unearned premium reserve, totalled $1.62 billion, an increase from the $1.54 billion reported as of Dec. 31, 1992.
 "FGIC has achieved exceptional financial results for the first quarter and puts our company on an ambitious path for 1993," said Ann C. Stern, president and chief executive officer. "Our strong earnings have benefited from the low interest rate environment that has been fueling bond calls and refundings; we expect the situation to change within the year. The number of interest rate driven refunding issues will inevitably decline.
 "Nevertheless, FGIC's mature book of business, coupled with a significant amount of premiums written, will contribute to future strong earnings and ultimately to the company's formidable capital resources," she added.
 FGIC's total assets increased to $1.82 billion as of March 31, 1993 from $1.68 billion as of Dec. 31, 1992. The company's investment portfolio, consisting entirely of high-grade securities, totalled $1.67 billion as of March 31, 1993, an increase from $1.54 billion as of Dec. 31, 1992.
 A subsidiary of GE Capital, FGIC Corporation, through its subsidiary Financial Guaranty Insurance Company, has established itself as a leading insurer of securities sold in the capital markets, principally municipal bonds. The company also guarantees a variety of structured debt issues outside the municipal market.
 GE Capital, headquartered in Stamford, Conn., a wholly owned subsidiary of General Electric Company, is a diversified financial services company with assets exceeding $85 billion. GE Capital's financing activities include equipment and asset management, equipment financing, consumer/retail financial services, private label and VISA and MasterCard credit cards, automotive financing, commercial real estate financing and specialty insurance, such as private mortgage insurance and municipal bond insurance. GE is a diversified manufacturing, technology and services company with operations worldwide.
 FINANCIAL GUARANTY INSURANCE COMPANY
 GAAP
 Balance Sheets
 (In thousands)
 3/31/93 12/31/92
 (Unaudited)
 Assets:
 Investments:
 Fixed maturity securities,
 at amortized cost $1,390,765 $1,047,156
 Fixed maturity securities held
 in trading accounts, at market 154,709 422,929
 Short-term investments, at cost,
 which approximates market 121,570 68,352
 Total investments 1,667,044 1,538,437
 Cash 471 442
 Accrued investment income 31,730 33,528
 Premiums receivable 46 24
 Deferred policy acquisition costs 100,860 97,295
 Property and equipment, net of
 accumulated depreciation 10,126 10,338
 Receivable for securities sold 5,713 --
 Prepaid expenses and other assets 715 501
 Total assets $1,816,705 $1,680,565
 Liabilities:
 Unearned premiums 589,125 571,219
 Loss and loss adjustment
 expense reserves 42,005 39,706
 Ceded reinsurance balances payable 4,000 6,841
 Accounts payable and accrued expenses 35,817 32,896
 Current federal income taxes payable 34,584 18,643
 Deferred federal income taxes payable 44,408 46,636
 Payable for securities purchased 53,008 13,200
 Total liabilities 802,947 729,141
 Stockholders' Equity:
 Common stock, par value
 $250 per share 2,500 2,500
 Additional paid-in capital 346,511 324,639
 Unrealized gains on fixed maturity
 securities, net of tax 4,093 7,267
 Foreign currency translation
 adjustment (2,672) (1,597)
 Retained earnings 663,326 618,615
 Total stockholders' equity 1,013,758 951,424
 Total liabilities and
 stockholders' equity $1,816,705 $1,680,565
 FINANCIAL GUARANTY INSURANCE COMPANY
 GAAP
 Statements of Income
 (Unaudited, in thousands)
 Three months ended March 31 1993 1992
 Revenues:
 Gross premiums written $56,491 $57,095
 Ceded premiums written (3,988) (10,968)
 Net premiums written 52,503 46,127
 Increase in unearned premiums (17,906) (21,572)
 Premiums earned 34,597 24,555
 Net investment income 25,701 22,740
 Net realized gains 12,286 2,618
 Total revenues 72,584 49,913
 Losses and loss adjustment expenses 2,401 264
 Policy acquisition costs 4,262 3,425
 Other underwriting expenses 5,307 5,233
 Total losses and expenses 11,970 8,922
 Income before Federal income taxes 60,614 40,991
 Federal income taxes 15,903 7,861
 Net income $44,711 $33,130
 FINANCIAL GUARANTY INSURANCE COMPANY
 Supplementary Statutory Financial Information
 (In thousands)
 3/31/93 12/31/92 3/31/92
 Capital and surplus $666,818 $621,287 $565,483
 Contingency reserve 207,189 193,313 160,754
 Capital base 874,007 814,600 726,237
 Loss and loss adjustment
 expense reserves 28,936 28,592 19,684
 Unearned premium reserve 716,375 694,566 604,523
 Total policyholders' reserves $1,619,318 $1,537,758 $1,350,444
 -0- 4/15/93
 /CONTACT: David Caouette of Financial Guaranty Insurance Company, 212-312-3009/
 (GE)


CO: Financial Guaranty Insurance Company ST: New York, Connecticut IN: INS SU: ERN

SM-TB -- NY102 -- 6447 04/15/93 16:33 EDT
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