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Genesis' CE0 Announces Quota-Share Agreement with Second Largest Insurance Company In Central America

Agreement Expected to Increase Net Revenues By $3 Million During The

First and Second Quarters of 1997, $5 Million in Accretive Earnings by
 Year-End 1997

CHATTANOOGA, Tenn., Nov. 25 /PRNewswire/ -- Genesis Insurance & Financial Services, Inc.'s (Nasdaq: GIFS) CEO, Mr. Mohamed Khairy Mohamed Zayed, II, announced that the company has negotiated a quota-share agreement with the second largest insurance company in Central America, La Centro Americana, S.A., San Salvador, El Salvador.

Implementation of the joint venture is expected to occur early in the first quarter of 1997. The company believes that earnings resulting from the new relationship could increase net revenue by over $3 million between the first and second quarters of 1997, and could easily increase accretive earnings by $5 million ($.28 EPS) by year-end 1997. The agreement establishes a long term joint venture between the companies wherein GIFS wholly owned subsidiary Congress Re-Insurance Corporation, Inc., will counter-guarantee up to 80% of all performance related bonding associated with La Centro Americana's market share in Central America. It is expected that between $100-$200 million in bonding products will be sold pursuant to this agreement during 1997.

For additional questions or for more information, please contact Investor Relations at 735 Broad Street, Suite 1001, Chattanooga, Tennessee 37402 or 423-266-7544 or via facsimile at 423-266-7750 or via E-mail at Genesis Insurance & Financial Services, Inc., is a diversified holding company maintaining companies and investments in the financial service industry, medical products industry, agricultural industry, real estate, natural gas resources, gold mining and investments in other hard assets, securities and projects.

SOURCE Genesis Insurance & Financial Services, Inc.
 -0- 11/25/96

/CONTACT: Mohamed Zayed, President & CEO, Genesis Insurance & Financial Services, 423-266-7544/


CO: Genesis Insurance & Financial Services, Inc. ST: Tennessee IN: INS SU: ERP

KS -- ATM007 -- 3667 11/25/96 11:07 EST
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Publication:PR Newswire
Date:Nov 25, 1996
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