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HAWAIIAN ELECTRIC INDUSTRIES INC. ANNOUNCES PRELIMINARY ESTIMATE OF HURRICANE INIKI DAMAGE

 HAWAIIAN ELECTRIC INDUSTRIES INC. ANNOUNCES
 PRELIMINARY ESTIMATE OF HURRICANE INIKI DAMAGE
 HONOLULU, Sept. 25 /PRNewswire/ -- Hawaiian Electric Industries Inc. (NYSE: HE) (HEI) said its property-casualty insurance subsidiary estimates policyholder claims of $140 million to $150 million from Hurricane Iniki that stuck the island of Kauai on Sept. 11. HEI intends to establish a loss reserve in the third quarter sufficient to pay policy claims, net of recoveries from the subsidiary's reinsurers. Establishment of the loss reserve is expected to reduce HEI's third quarter net income by an estimated $15 million to $18 million, or 62 cents to 74 cents per share, according to Robert F. Clarke, HEI president and chief executive officer.
 All other HEI subsidiaries -- including the electric utility and savings bank -- sustained little or no damage, Clarke said. As previously announced, HEI does not own the electric utility on Kauai.
 "I want to emphasize that this estimate is preliminary," Clarke said. "Our adjusters are just beginning case-by-case evaluations of customer claims. We should have a more definitive damage assessment around Oct. 20 when we announce third-quarter results. Before the hurricane, we expected to report improved third-quarter results. In 1991, third-quarter net income was $15 million, or 64 cents per share."
 At a special meeting of the board of directors, HEI approved a $20 million capital contribution to Hawaiian Insurance's $43 million surplus to provide for further growth and maintain financial strength.
 American Insurance Services Group, an insurance industry organization, announced Sept. 23 that Hurricane Iniki caused an estimated $1.6 billion in insured property damage, the third most costly storm in U.S. history. Only Hurricanes Andrew at $7.8 billion in August 1992 and Hugo at $4.2 billion in September 1989 were more costly.
 "A storm of Hurricane Iniki's force has never before hit the Hawaiian Islands," Clarke said. "During the last hurricane 10 years ago, policyholders sustained losses of about $23 million. Those claims had a minimal impact on net income because of substantial reinsurance coverages. Thus, it was difficult to foresee a catastrophe of Hurricane Iniki's magnitude in planning our reinsurance strategies. In fact, today we have even more reinsurance coverage than in 1982.
 "As a diversified utility holding company, we take a conservative stance on the risk profiles of our non-utility companies. Accordingly, we are already evaluating strategies for reducing future risks to Hawaiian Insurance, should such an event -- however unlikely -- recur.
 "While we feel badly about the financial effect on our stockholders, we remain very concerned about the Kauai residents whose lives have been disrupted by this storm. HEI and its subsidiaries are actively contributing services and funds to help with Kauai's reconstruction."
 Hawaiian Insurance is the state's fifth-largest property-casualty insurer, providing workers' compensation, automobile, general liability, homeowners and
fire coverage to about 63,000 commercial and individual customers. Hawaiian Insurance has about


4,300 individual customers and 500 commercial customers on Kauai.
 Hawaiian Electric Industries Inc. is a diversified electric utility holding company delivering essential services to the people of Hawaii through its electric utility, banking, property-casualty insurance, maritime freight transportation and residential housing development subsidiaries.
 -0- 9/25/92
 /CONTACT: Constance H. Lau, treasurer, 808-543-7384, or Gary S. Sharpe, director-investor relations, 808-543-7385/
 (HE) CO: Hawaiian Electric ST: Hawaii IN: UTI SU:


LS-EH -- LA007 -- 3395 09/25/92 08:03 EDT
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Date:Sep 25, 1992
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