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GAINSCO REPORTS 8 PERCENT INCREASE IN EARNINGS

 FORT WORTH, Texas, July 28 /PRNewswire/ -- Gainsco, Inc. (AMEX: GNA) today reported an 8 percent increase in net income for the second quarter ended June 30, 1993.
 Net income for the second quarter of 1993 was $3,485,000, or $.20 per share, an increase of 8 percent over the $3,235,000, or $.19 per share in the 1992 period. For the six months ended June 30, 1993, net income increased 11 percent to $6,855,000 or $.40 per share, from the $6,157,000, or $.36 per share, recorded in the 1992 period. Gross premiums written for the second quarter 1993 were $22,838,000 representing a 5 percent decrease from the 1992 period. The decrease in writings was anticipated. Writings for the month of June, however, came in at a record level. Written premium for July is expected to exceed last July's with the improving trend continuing through year end.
 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, "The annualized return on beginning equity was over 25 percent as forecasted. The combined ratio of 80.80 percent was better than our forecasted 85-90 percent. At this point, we still think annual gross premiums written of $95-105 million is achievable. Additionally, we are very confident of producing better than a 25 percent return on beginning equity."
 GAINSCO, INC. is a vertically integrated property and casualty insurance holding company specializing in underwriting 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 Six Months
 Period ended June 30, 1993 1992 1993 1992
 Gross premiums written $22,838 $23,944 $41,327 $45,162
 Net premiums written $20,859 $22,956 $37,826 $43,315
 Premiums earned $18,904 $19,586 $37,754 $37,408
 Net investment income 1,515 1,346 3,010 2,603
 Software sales revenues 133 131 255 359
 Premium finance revenues 30 108 87 263
 Plan service revenues (CAIP) 356 382 877 875
 Realized gains 0 7 4 49
 Other income 11 7 26 15
 TOTAL REVENUES 20,949 21,567 42,013 41,572
 Claims and CAE paid 7,824 6,047 14,441 11,371
 Change in claims and CAE reserves 1,075 3,439 4,483 7,032
 Change in deferred
 acquisition costs (327) (787) (19) (1,308)
 Other expenses 7,670 8,459 14,917 16,099
 Federal income taxes 1,222 1,174 1,336 2,221
 NET INCOME $ 3,485 $ 3,235 $ 6,855 $ 6,157
 Net income per share $ 0.20 $ 0 .19 $ 0.40 $ 0.36
 Weighted average shares outstanding and
 common stock equivalents 17,164 17,083 17,122 17,083
 Shareholders' equity, ending $61,607 $48,083 $61,607 $48,083
 Return for the period on beginning of the
 year shareholders' equity
 (in percents) 6.35 7.71 12.49 14.68
 STATUTORY OPERATING RATIOS
 (in percents)
 Claim ratio 46.43 47.60 49.50 48.40
 Expense ratio 34.37 31.10 34.93 31.90
 Combined ratio 80.80 78.70 84.44 80.30
 -0- 7/28/93
 /CONTACT: Lynn Morgen or Edward Nebb of Morgen-Walke Associates, Inc., 212-850-5600, for Gainsco/
 (GNA)


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

MP -- NY001 -- 6564 07/28/93 07:50 EDT
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Publication:PR Newswire
Date:Jul 28, 1993
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