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FIRST COLONY REPORTS SECOND QUARTER AND SIX MONTHS RESULTS

 LYNCHBURG, Va., July 19 /PRNewswire/ -- First Colony Corporation (NYSE: FCL) today reported net income of $56.0 million, or $1.13 per share, for 1993's second quarter, up 61 percent from $34.6 million, or $0.70 per share in the second quarter of 1992. For the first six months of 1993, net income was $112.7 million, or $2.28 per share, up 58 percent compared with $71.4 million, or $1.45 per share a year earlier.
 Pre-tax operating income, which excludes debt service cost, realized investment gains and related amortization of deferred acquisition costs, was $43.6 million for the quarter, up 8 percent from $40.5 million in 1992's second quarter. For the first six months, pre-tax operating income of $84.5 million was up 9 percent from $77.7 million for the comparable 1992 period. After-tax operating income, which excludes debt service cost, realized investment gains and related amortization, of $28.6 million, or $0.58 per share for the quarter, was level with the 1992 second quarter. After-tax operating income for the six months of $56.0 million, or $1.14 per share, was up 2 percent from $54.8 million, or $1.11 per share in 1992. After-tax results were affected by a higher effective tax rate in 1993. Including debt service, after-tax operating income for the second quarter and six months of 1993 was $0.54 per share and $1.06 per share, respectively. There was no debt service in the first six months of 1992.
 After-tax realized investment gains were $32.3 million for the quarter versus $7.5 million a year ago. For the six-month period, after-tax gains were $65.8 million, up from $18.5 million a year earlier. Realized gains for the quarter and six months resulted principally from involuntary calls in the bond portfolio.
 Net income for the quarter and six months benefited from higher realized investment gains, favorable life insurance mortality and accelerated income from collateralized mortgage obligations (CMOs) in the bond portfolio. These benefits were offset in part by higher amortization costs related to realized investment gains, lower income from the reinvestment of involuntary bond call proceeds, debt service cost related to the company's bank loan entered into in December 1992 and a higher effective tax rate.
 For the second quarter, single premium immediate annuity sales of $102.0 million were up 29 percent, annual premium life insurance sales of $24.6 million were up 2 percent and single premium deferred annuity sales of $50.1 million increased 44 percent. For the six months, single premium immediate annuity sales of $202.7 million increased 22 percent, annual premium life insurance sales of $47.0 million were down 2 percent and single premium deferred annuity sales of $122.4 million were up 71 percent. Total revenues for the second quarter were $378 million, up 32 percent from a year ago. For the six months, total revenues were $737 million, up 28 percent from 1992. The increase in revenues includes higher net investment income, realized investment gains and premiums.
 At June 30, 1993, compared with year-end 1992, life insurance in force amounted to $105 billion, up 9 percent; assets were $7.9 billion, up 7 percent; and shareholders' equity reached $939 million, or $19.05 per share, up 15 percent.
 Bruce C. Gottwald Jr., chairman and chief executive officer of First Colony Corporation, said: "While involuntary calls in the bond portfolio continued at their high levels, overall we are pleased with the second quarter performance. Operating income was up, immediate annuity sales were strong and life insurance sales were higher compared to both the second quarter 1992 and the first quarter 1993."
 First Colony Corporation is a Richmond, Va.-based holding company which owns First Colony Life Insurance Company and its wholly owned subsidiary, American Mayflower Life Insurance Company of New York. Ethyl Corporation completed the spin-off of its remaining 80 percent ownership of First Colony shares by a tax-free dividend of these shares to its shareholders on July 1, 1993.
 FIRST COLONY CORPORATION
 Three and Six Months Financial Highlights
 6/30/93
 Three Months Ended June 30, 1993 1992 Percent Change
 Income:
 Pre-tax operating income(A) 43,565 40,481 8
 After-tax operating income 28,623 28,539 0
 After-tax operating income
 including debt service cost 26,884 28,539 (6)
 Net realized investment gains(2) 29,073 6,128 374
 Net income 55,957 34,667 61
 Per Share:
 After-tax operating income $0.58 $0.58 0
 After-tax operating income
 including debt service cost $0.54 $0.58 (6)
 Net realized investment gains $0.59 $0.12 374
 Net income $1.13 $0.70 61
 Six Months Ended June 30, 1993 1992 Percent Change
 Income:
 Pre-tax operating income(A) 84,479 77,718 9
 After-tax operating income 56,035 54,810 2
 After-tax operating income
 including debt service cost 52,501 54,810 (4)
 Net realized investment gains(B) 60,146 16,314 269
 Net cumulative effect
 of accounting changes -- 332 --
 Net income 112,647 71,456 58
 Per share
 After-tax operating income(A) $1.14 $1.11 2
 After-tax operating income
 including debt service cost $1.06 $1.11 (4)
 Net realized investment gains(B) $1.22 $0.33 269
 Net cumulative effect
 of accounting changes $0.00 $0.01 --
 Net income $2.28 $1.45 58
 (A) Excludes debt service cost, realized investment gains and related amortization.
 (B) Realized investment gains after related amortization and income taxes.
 -0- 7/19/93 R
 /CONTACT: Frank G. Land, of First Colony Corporation, 804-948-5293/
 (FCL)


CO: First Colony Corporation ST: Virginia IN: FIN SU: ERN

MH-KD -- DC005 -- 2987 07/19/93 10:53 EDT
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Date:Jul 19, 1993
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