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GAINSCO REPORTS THIRD QUARTER EARNINGS

 /NOTE TO EDITORS: The following story was transmitted prematurely last night at 6:12 p.m. due to an error that occurred at PRNewswire. PRN regrets any inconvenience this has caused editors./
 FORT WORTH, Texas, Oct. 27 /PRNewswire/ -- GAINSCO, Inc. (AMEX: GNA), today reported net income of $.18 per share for the third quarter ended Sept. 30, 1993.
 Net income for the third quarter of 1993 was $3,240,000, or $.18 per share, as compared to $3,370,000, or $.19 per share, in the 1992 period. For the nine months ended Sept. 30, 1993, net income was $10,095,000, or $.56 per share as compared to $9,527,000, or $.53 per share, recorded in the 1992 period. Gross premiums written for the third quarter 1993 were $21,164,000 and represents a 7 percent increase over the 1992 period. The statutory combined ratio for the quarter was 87.10 percent with a claim ratio of 54.06 percent and an expense ratio of 33.04 percent
 All per share data has been adjusted to reflect the 5 percent stock dividend paid on Oct. 15, 1993.
 Commenting on the results, Joseph D. Macchia, chairman of the board, president and chief executive officer, stated, "In line with our expectations, the combined ratio of 85.19 percent is within our forecasted range of 85-90 percent and should remain in this range for the year. Additionally, the gross premiums written for the third quarter exceeded the prior year and this should continue into the fourth quarter and result in gross premiums written for the year exceeding last year. The annualized return on beginning equity is as expected at 25 percent. More importantly, the company continues to deliver quality of earnings and year end 1993 will be the ninth consecutive year that the company has achieved better than a 22 percent return on equity. A proud achievement, but you must judge that, not us."
 For the fourth consecutive year the company was included in Forbes' list of the 200 Best Small Companies in America. Our 1993 ranking was 81.
 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 Nine Months
 Periods ended Sept. 30 1993 1992 1993 1992
 Gross premiums written $21,264 $19,852 $62,591 $65,014
 Net premiums written $19,556 $19,039 $57,381 $62,355
 Premiums earned $18,930 $19,802 $56,684 $57,211
 Net investment income 1,567 1,412 4,577 4,015
 Software sales revenue 130 139 384 498
 Premium finance revenues 37 133 124 395
 Plan service revenues (CAIP) 362 395 1,239 1,269
 Realized gains -- 89 4 139
 Other income 10 12 37 26
 Total revenues 21,036 21,982 63,049 63,553
 Claims & CAE paid 9,194 6,433 23,637 17,803
 Change in claims &
 CAE reserves 1,068 3,284 5,550 10,316
 Change in deferred
 acquisition costs (67) (37) (86) (1,345)
 Other expenses 6,811 7,563 21,727 23,662
 Federal income taxes 790 1,369 2,126 3,590
 Net income $3,240 $3,370 $10,095 $9,527
 Net income per share $ .18 $ .19 $ .56 $ .53
 Weighted average shares
 outstanding and common
 stock equivalents 18,006 18,008 17,966 17,995
 Shareholders' equity,
 ending $64,365 $51,347 $64,365 $51,347
 Return for the period
 on beginning of the
 year shareholders'
 equity (in percent) 5.90 8.04 18.39 22.72
 STATUTORY OPERATING RATIOS
 Claim ratio (in percent) 54.06 48.38 50.90 48.38
 Expense ratio (in percent) 33.04 33.47 34.29 32.36
 Combined ratio 87.10 81.85 85.19 80.74
 -0- 10/27/93 R
 /CONTACT: Lynn Morgen or Michele Katz of Morgen-Walke Associates, 212-850-5600/
 (GNA)


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

GK -- NY001CR -- 7344 10/27/93 13:24 EDT
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Publication:PR Newswire
Date:Oct 27, 1993
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