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GAINSCO REPORTS 55 PERCENT INCREASE IN 1992 EARNINGS AND A 31 PERCENT RETURN ON BEGINNING EQUITY

 FORT WORTH, Texas, Feb. 25 /PRNewswire/ -- GAINSCO, INC. (AMEX: GNA) today reported significant increases in net income for the fourth quarter and year ended Dec. 31, 1992.
 Net income for the fourth quarter of 1992 was $3,653,000, or $.22 per share, an increase of 60 percent over the $2,284,000, or $.14 per share, earned in 1991. For the year ended Dec. 31, 1992, net income increased 55 percent to $13,179,000, or $.81 per share, from the $8,516,000, or $.52 per share, recorded in 1991. Gross premiums written for the year ended Dec. 31, 1992 were 23 percent above the comparable 1991 period.
 All per share data has been adjusted to reflect a 5 percent stock dividend paid on July 15, 1992, and a 3-for-2 stock split effected Sept. 1, 1992.
 Commenting on the results, Joseph D. Macchia, chairman of the board, president and chief executive officer, stated, "Our performance for the year substantially exceeded our combined ratio and return on beginning equity goals for 1992. GAINSCO's combined ratio for the year ended Dec. 31, 1992 was 81.52 percent, as compared to our targeted 83-85 percent range. Further, we achieved a 31 percent return on beginning equity, significantly better than our announced goal of 25-27.5 percent. This is our eighth consecutive year where the return on beginning equity exceeded 22 percent."
 He added, "We are excited about our prospects for continued strong growth in 1993. Our goals for 1993 are gross premiums between $95-105 million, a statutory combined ratio range of 85-90 percent and a return on beginning equity of at least 25 percent. The pending hardening of the insurance marketplace will herald that the best is still yet to come for GAINSCO. For this, we are not only grateful, but excited. As a result, we expect another record year in 1993 which will add to the string of record years we have had since 1986, the year we became a public company."
 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
 Condensed Consolidated Statements of Operations
 (Dollars in thousands, except per share data)
 Quarter Ended Year Ended
 December 31, December 31,
 1992 1991 1992 1991
 Gross premiums written $18,461 $19,674 $83,475 $68,083
 Net premiums written $17,702 $18,914 $80,057 $63,610
 Premiums earned $19,972 $16,545 $77,182 $53,635
 Net investment income 1,458 1,236 5,473 4,515
 Software sales revenues 172 72 670 798
 Premium finance revenues 131 177 526 572
 Plan service revenues (CAIP) 374 285 1,644 833
 Realized gains 33 10 172 68
 Other income 10 22 36 38
 Total revenues 22,150 18,347 85,703 60,459
 Claims & CAE paid 7,536 5,496 25,340 17,884
 Change in claims
 & CAE reserves 1,564 3,349 11,880 9,137
 Change in deferred acquisition
 costs 448 (386) (897) (2,270)
 Other expenses 7,863 6,945 31,525 24,900
 Federal income taxes 1,086 659 4,676 2,292
 Net income $ 3,653 $ 2,284 $13,179 $8,516
 Net income per share $ .22 $ .14 $ .81 $ .52
 Weighted average shares
 outstanding & common
 stock equivalents 16,335 16,235 16,335 16,235
 Shareholders' equity,
 ending $54,881 $41,940 $54,881 $41,940
 Return for the period on
 beginning of the year
 shareholders' equity 8.71 pct. 6.78 pct. 31.42 pct. 25.30 pct.
 Statutory Operating Ratios
 Claim ratio 45.57 pct. 52.50 pct. 47.67 pct. 49.40 pct.
 Expense ratio 39.11 31.56 33.85 33.32
 Combined Ratio 84.68 pct. 84.06 pct. 81.52 pct. 82.72 pct.
 -0- 02/25/93
 /CONTACT: Lynn Morgen or Michele Katz of Morgen-Walke Associates, Inc., 212-986-5900, for GAINSCO, INC./
 (GNA)


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

AH -- NY003 -- 0203 02/25/93 07:31 EST
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Publication:PR Newswire
Date:Feb 25, 1993
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