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FRONTIER INSURANCE GROUP INC. ANNOUNCES UNAUDITED THIRD QUARTER 1993 RESULTS

 ROCK HILL, N.Y., Nov. 11 /PRNewswire/ -- Frontier Insurance Group Inc. (Frontier) (NYSE: FTR) announced its unaudited third quarter results for 1993 as follows:
 FRONTIER INSURANCE GROUP INC.
 Income Statement Data
 (unaudited)
 Three Months ended Sept. 30 Percent
 1993 1992 Change
 Revenues:
 Premiums written $48,537,000 $46,373,000 4.7
 Premiums ceded (8,157,000) (8,839,000) (7.7)
 Net premiums written 40,380,000 37,534,000 7.6
 Net premiums earned 31,104,000 26,384,000 17.9
 Net investment income 4,962,000 6,001,000 (17.3)
 Realized capital gains (17,000) (46,000) (63.3)
 Claims adjusting income 92,000 314,000 (70.6)
 Total revenues 36,141,000 32,653,000 10.7
 Expenses:
 Losses 16,168,000 15,158,000 6.7
 Loss adjustment expenses 4,491,000 4,109,000 9.3
 Policy acquisition costs 5,429,000 5,076,000 7.0
 Underwriting and other
 expenses 3,824,000 2,810,000 36.1
 Total expenses 29,912,000 27,153,000 10.2
 Income before income taxes
 and cumulative effect of change
 in accounting for income
 taxes 6,229,000 5,500,000 13.3
 Income taxes:
 State 197,000 392,000 (49.7)
 Federal 881,000 912,000 (3.4)
 Total income taxes 1,078,000 1,304,000 (17.3)
 Income before cumulative
 effect of accounting change 5,151,000 4,196,000 22.8
 Cumulative effect as of 1/1/93
 of change in method of
 accounting for income taxes --- --- ---
 Net income $ 5,151,000 $ 4,196,000 22.8
 Earnings per share:
 Operating income $.70 $.56 25.0
 Realized capital gains (losses) --- --- ---
 Federal income tax 'Fresh Start'
 benefits --- .02 (100)
 Cumulative effect of accounting
 change --- --- ---
 Net income $.70 $.58 20.7
 Weighted avg. shares outst. 7,378,000 7,175,000 2.8
 Statutory combined ratio 93.9 pct 102.1 pct ---
 Nine Months ended Sept. 30 Percent
 1993 1992 Change
 Revenues:
 Premiums written $119,368,000 $116,596,000 2.4
 Premiums ceded (24,481,000) (26,163,000) (6.4)
 Net premiums written 94,887,000 90,433,000 4.9
 Net premiums earned 90,597,000 74,104,000 22.3
 Net investment income 16,165,000 14,945,000 8.2
 Realized capital gains 612,000 88,000 599.5
 Claims adjusting income 353,000 1,097,000 (67.8)
 Total revenues 107,727,000 90,234,000 19.4
 Expenses:
 Losses 46,859,000 40,098,000 16.9
 Loss adjustment expenses 14,169,000 11,369,000 24.6
 Policy acquisition costs 13,694,000 11,777,000 16.3
 Underwriting and other
 expenses 10,951,000 8,802,000 24.4
 Total expenses 85,763,000 72,046,000 18.9
 Income before income taxes
 and cumulative effect of change
 in accounting for income
 taxes 22,054,000 18,188,000 21.3
 Income taxes:
 State 798,000 936,000 (14.7)
 Federal 4,496,000 3,442,000 30.6
 Total income taxes 5,294,000 4,378,000 20.9
 Income before cumulative
 effect of account. change 16,760,000 13,810,000 21.4
 Cumulative effect as of 1/1/93
 of change in method of
 accounting for income taxes 708,000(A) --- ---
 Net income $ 17,468,000 $ 13,810,000 26.5
 Earnings per share:
 Operating income $2.25 $1.88 19.7
 Realized capital gains (losses) .05 .01 400.0
 Federal income tax 'Fresh Start'
 benefits --- .04 (100)
 Cumulative effect of accounting
 change .10 --- ---
 Net income 2.40 1.93 24.4
 Weighted avg. shares outst. 7,269,000 7,172,000 1.4
 Statutory combined ratio 93.5 pct 96.5 pct ---
 Balance Sheet Data (B)
 (Unaudited)
 Sept. 30 Percent
 1993 1992 Change
 Total investments $348,983,000 $261,080,000 33.7
 Total assets 513,436,000 395,968,000 29.7
 Reserves for:
 Unpaid losses 222,232,000 191,124,000 16.8
 Loss adjustment expenses 42,410,000 35,889,000 15.4
 Total liabilities 333,666,000 293,471,000 13.3
 Total capital 179,769,000 102,497,000 76.6
 Book value per share $20.84 $14.25 47.3
 (A) -- During the first quarter of 1993, Frontier implemented FASB 109 "Accounting for Income Taxes" which resulted in a cumulative non- recurring benefit of $708,000, or $.10 per share.
 (B) -- During the first quarter of 1993, Frontier implemented FASB 113 "Accounting and Reporting for Reinsurance of Short-Duration and Long-Duration Contracts" which resulted in no effect on income and the reclassification of 1992 balance sheet accounts to conform with the new standard.
 Frontier is an underwriter and creator of specialty insurance products serving the needs of insureds in niche markets.
 -0- 11/11/93
 /CONTACT: Linda Markovits of Frontier Insurance, 914-796-2100, ext. 521/
 (FTR)


CO: Frontier Insurance Group Inc. ST: New York IN: INS SU: ERN

GK-LG -- NY057 -- 3339 11/11/93 15:32 EST
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Date:Nov 11, 1993
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