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GAINSCO REPORTS 15 PERCENT INCREASE IN EARNINGS

 FORT WORTH, Texas, April 28 /PRNewswire/ -- Gainsco, Inc. (AMEX: GNA), today reported a 15 percent increase in net income for the first quarter ended March 31, 1993.
 Net income for the first quarter of 1993 was $3,370,000, or $.20 per share, an increase of 15 percent over the $2,921,000, or $.17 per share in 1992. Gross premiums written for the first quarter 1993 were $18,489,000 representing a 13 percent decrease from the 1992 period. The decrease is attributable to lower than usual writings in January and February of 1993. However, March writings came in at the expected level. For April of this year premiums received are coming in above last April's level.
 All per share data has been adjusted to reflect the 5 percent stock dividend paid on April 15, 1993.
 Commenting on the results, Joseph D. Macchia, chairman of the board, president and chief executive officer, stated, "Despite the decrease in written premiums for the quarter, revenues were 5 percent above the 1992 period, and the statutory combined ratio of 89.92 percent is within our targeted range of 85-90 percent. The return on beginning equity was approximately 25 percent on an annualized basis. We remain confident of achieving our goals in 1993 which are, gross premiums written of $95-105 million, a combined ratio of 85-90 percent and a return on beginning equity of at least 25 percent."
 The company also added that the decrease in Federal income taxes is a result of the exercise of stock options by insiders during the quarter and the company's implementation on a cumulative basis of the Financial Accounting Standards Board Statement 109 "Accounting for Income Taxes."
 Gainsco, Inc. is a vertically integrated property and casualty insurance holding company specializing in underwriting and marketing excess and surplus lines. Its insurance companies are General Agents Insurance Company of America, Inc., MGA Insurance Company, Inc. and GAINSCO County Mutual Insurance Company. The insurance service subsidiaries include General Agents Premium Finance Company, which offers premium financing programs for general agents in connection with their marketing activities; Agents Processing Systems, Inc., which markets a computer software policy management system to general agents; and Risk Retention Administrators, Inc., which assists managing general agents in forming and operating risk retention groups.
 GAINSCO, INC. AND SUBSIDIARIES
 Consolidated Statements of Operations
 (In thousands, except per share data)
 Quarter ended March 31, 1993 1992
 Gross premiums written $18,489 $21,217
 Net premiums written $16,966 $20,360
 Premiums earned $18,850 $17,822
 Net investment income 1,495 1,256
 Software sales revenues 121 228
 Premium finance revenues 57 155
 Plan service revenues (CAIP) 521 493
 Realized gains 4 42
 Other income 16 8
 Total revenues 21,064 20,004
 Claims & CAE paid 6,617 5,324
 Change in claims & CAE reserves 3,408 3,593
 Change in deferred acquisition
 costs 308 (521)
 Other expenses 7,247 7,641
 Federal income taxes 114 1,046
 NET INCOME $ 3,370 $ 2,921
 Net income per share $ .20 $ .17
 Weighted average shares
 outstanding & common
 stock equivalents 17,153 17,153
 Shareholders' equity, ending $58,179 $44,832
 Return for the period on
 beginning of the year
 shareholders' equity (in percents) 6.14 6.97
 STATUTORY OPERATING RATIOS (IN PERCENTS)
 Claim Ratio 52.53 49.22
 Expense Ratio 37.39 32.71
 Combined Ratio 89.92 81.93
 -0- 4/28/93
 /CONTACT: Lynn Morgen or Michele Katz of Morgen-Walke Associates, Inc., 212-986-5900, for Gainsco/
 (GNA)


CO: Gainsco, Inc. ST: Texas IN: INS SU: ERN

SH -- NY015 -- 1822 04/28/93 09:16 EDT
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Publication:PR Newswire
Date:Apr 28, 1993
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