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INTEGON CORPORATION REPORTS 1992 OPERATING EARNINGS UP A RECORD 59.8 PERCENT

 WINSTON-SALEM, N.C., Feb. 4 /PRNewswire/ -- Integon Corporation (NYSE: IN) announced today that its pro forma operating earnings before investment gains for 1992 broke all previous records, growing to $29.3 million, or $1.69 per share, a 59.8 percent increase over 1991's operating earnings of $18.4 million, or $1.05 per share. The company's pro forma net income rose to $33.1 million in 1992, or $1.90 per share, a 72.1 percent increase over 1991 net income of $19.2 million, or $1.09 per share.
 "Last year's strong earnings," said Integon Corporation President, James T. Lambie, "resulted from a 5.5 percentage point improvement to 81.1 in the GAAP combined ratio for 1992 coupled with a continuation of the solid growth in Integon's nonstandard automobile insurance business in North Carolina and Virginia. The lower combined ratio was produced primarily by a significant improvement in the loss ratio attributable mainly to the economy and favorable weather conditions in the company's operating territory, as well as the company's continuing efforts to better manage its claims expenses." The combined ratio, which measures the company's overall performance, continues to reflect operating costs that are well below the industry's average.
 Integon's total pro forma revenues for 1992 grew to $215.5 million, a 15.9 percent increase over the previous year's total of $185.9 million, due primarily to a 26.5 percent increase in premiums earned on its nonstandard automobile insurance products. Other contributions included increases in investment income, realized investment gains and income from Integon's premium financing service.
 Integon's operating earnings for the fourth quarter of 1992, also reported on a pro forma basis, reached $7.6 million, or $.44 per share, a 64.0 percent increase over the comparable 1991 period. Net income for the fourth quarter totaled $8.0 million, up 63.3 percent from the $4.9 million reported in the same period a year ago. Total revenues for the quarter totaled $57.2 million, a 16.2 percent improvement over last year's fourth quarter revenues of $49.2 million.
 In Integon's established North Carolina and Virginia markets, net written premiums for nonstandard automobile insurance reached $133.1 million in 1992, an increase of 16.5 percent. In Georgia, a state Integon entered in January 1992, the Company produced $26.3 million in nonstandard auto insurance net written premiums. In Florida, following less than one quarter of operations in its newest market, the Company added $3.0 million in nonstandard auto insurance net written premiums.
 Financial results are reported on a pro forma, or adjusted, basis in order to provide a meaningful comparison between 1992 and 1991. For purposes of comparison, financial results have been adjusted to reflect the transaction in February 1992 involving the initial public offering of common stock and the concurrent retirement of debt and the related write-off of deferred loan costs associated with that debt, as having all occurred on Jan. 1, 1991.
 Integon Corporation, through its wholly-owned property and casualty insurance subsidiaries, specializes in the underwriting and marketing of specialty automobile insurance products to individuals. The company, headquartered in Winston-Salem, markets its products through over 2,900 independent agencies located in North Carolina, Virginia, Tennessee, Georgia and Florida.
 INTEGON CORPORATION AND SUBSIDIARIES
 STATEMENTS OF OPERATIONS
 (In thousands, except per share data, preliminary and unaudited)
 Pro Forma
 Periods ended Three months Year
 Dec. 31 1992 1991 1992 1991
 Direct premiums written $85,771 $70,720 $341,957 $295,483
 Net premiums written $50,823 $39,983 $193,459 $166,306
 Change in unearned premium (1,601) 3,072 (11,427) (4,966)
 Premiums earned 49,222 43,055 182,032 161,340
 Net investment income 4,592 2,990 16,998 12,828
 Net realized investment gains 85 379 3,925 1,271
 Other income, primarily
 financing revenue 3,252 2,743 12,538 10,413
 Total revenues 57,151 49,167 215,493 185,852
 Loss and loss adjustment
 expenses 29,498 26,415 103,714 101,474
 Policy acquisition and other
 underwriting expenses 10,472 11,192 43,871 38,198
 Other expenses, primarily
 financing expenses 3,607 1,711 11,186 7,279
 Amortization of goodwill 406 430 1,644 1,736
 Interest expense 1,550 1,950 7,392 7,689
 Total expenses 45,533 41,698 167,807 156,376
 Income from operations before
 federal income taxes 11,618 7,469 47,686 29,476
 Federal income taxes 3,926 2,558 15,748 10,268
 Income of continuing property
 and casualty business 7,692 4,911 31,938 19,208
 Extraordinary items, net (A) 330 -- 1,122 --
 Net income $8,022 $4,911 $33,060 $19,208
 Operating earnings $7,642 $4,660 $29,348 $18,369
 Net realized investment gains 50 251 2,590 839
 Extraordinary items, net 330 -- 1,122 --
 Net income $8,022 $4,911 $33,060 $19,208
 Per share:
 Operating earnings $0.44 $0.27 $1.71 $1.07
 Preferred dividend -- -- (0.02) (0.02)
 Operating earnings available
 to common 0.44 0.27 1.69 1.05
 Net realized investment gains 0.01 0.01 0.15 0.04
 Income before
 extraordinary items 0.45 0.28 1.84 1.09
 Extraordinary items, net 0.02 -- 0.06 --
 Net income available to common $0.47 $0.28 $1.90 $1.09
 Weighted average shares
 outstanding 17,217 17,198 17,210 17,198
 (A) -- Extraordinary Items are
 as follows:
 Pre-Tax After Tax Pre-Tax After Tax
 Premium paid on early
 extinguishment of 15 percent
 subordinated note ($2,000) ($1,320)
 Reduction of obligation
 due affiliate $500 $330 3,700 2,442
 Total $500 $330 $1,700 $1,122
 Historical
 Periods ended Three months Year
 Dec. 31 1992 1991 1992 1991
 Direct premiums written $85,771 $70,720 $341,957 $295,483
 Net premiums written $50,823 $39,983 $193,459 $166,306
 Change in unearned premium (1,601) 3,072 (11,427) (4,966)
 Premiums earned 49,222 43,055 182,032 161,340
 Net investment income 4,592 2,834 16,792 11,869
 Net realized investment gains 85 379 3,925 1,271
 Other income, primarily
 financing revenue 3,252 2,743 12,538 10,413
 Total revenues 57,151 49,011 215,287 184,893
 Loss and loss adjustment
 expenses 29,498 26,415 103,714 101,474
 Policy acquisition and other
 underwriting expenses 10,472 11,192 43,871 38,198
 Other expenses, primarily
 financing expenses 3,607 1,711 11,186 7,279
 Amortization of goodwill 406 430 1,644 1,736
 Interest expense 1,550 3,477 8,086 14,400
 Total expenses 45,533 43,225 168,501 163,087
 Income from operations before
 federal income taxes 11,618 5,786 46,786 21,806
 Federal income taxes 3,926 1,986 15,462 7,660
 Income of continuing property
 and casualty business 7,692 3,800 31,324 14,146
 Income (loss) of non-property
 and casualty business sold -- 14,924 (195) 28,085
 Extraordinary items, net (A) 330 -- (1,019) --
 Net income $8,022 $18,724 $30,110 $42,231
 Operating earnings $7,642 $3,549 $28,734 $13,307
 Net realized investment gains 50 251 2,590 839
 Income (loss) of non-property
 and casualty business sold -- 14,924 (195) 28,085
 Extraordinary items, net 330 -- (1,019) --
 Net income $8,022 $18,724 $30,110 $42,231
 Per Share:
 Operating earnings $0.44 $0.39 $1.80 $1.48
 Preferred dividend -- -- (0.02) (0.02)
 Operating earnings available
 to common 0.44 0.39 1.78 1.46
 Net realized investment gains 0.01 0.03 0.16 0.09
 Income of continuing P&C
 business 0.45 0.42 1.94 1.55
 Income of non-P&C business sold -- 1.64 (0.01) 3.08
 Extraordinary items, net 0.02 -- (0.06) --
 Net income available to common $0.47 $2.06 $1.87 $4.63
 Weighted average shares
 outstanding 17,217 9,019 15,918 9,019
 (A) Extraordinary Items
 are as follows:
 Pre-Tax After Tax Pre-Tax After Tax
 Premium paid on early
 extinguishment of 15 percent
 Subordinated Note ($2,000) ($1,320)
 Reduction of Obligation
 due Affiliate $500 $330 3,700 2,442
 Charge off of unamortized
 Deferred
 Loan Cost associated
 with debt repaid (3,244) (2,141)
 Total $500 $330 ($1,544) ($1,019)
 -0- 2/4/93
 /CONTACT: Turner Coley, 919-770-3000, or (investors) Gay Huntsman, 919-770-3074, both of Integon Corporation


CO: Integon Corporation ST: North Carolina IN: INS SU: ERN

TS -- NY011 -- 2832 02/04/93 09:42 EST
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Date:Feb 4, 1993
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