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INTERCARGO REPORTS FIFTH CONSECUTIVE YEAR OF RECORD EARNINGS IN 1991

    INTERCARGO REPORTS FIFTH CONSECUTIVE YEAR OF RECORD EARNINGS IN 1991
    SCHAUMBURG, Ill., Feb. 7 /PRNewswire/ -- Intercargo Corporation (NASDAQ-NMS: ICAR) today reported that the company achieved its fifth consecutive year of record earnings in 1991.
    Net income for the year ended Dec. 31, 1991, hit a record high of $3,717,000, or 77 cents per share, on 4,822,000 shares outstanding, up 17 percent from the previous mark of $3,170,000, or 69 cents per share, in 1990 on 4.6 million shares outstanding.
    For the 1991 fourth quarter, net income declined slightly to $1,252,000, or 24 cents per share, on 5,120,000 shares outstanding from a record $1,299,000, or 28 cents per share, on 4.6 million shares outstanding in the 1990 fourth quarter.
    Net income for the 1990 fourth quarter and year included a benefit of $402,000, or 9 cents per share, from compliance with certain provisions of the Budget Reconciliation Act of 1990 which requires insurance companies to accrue for and discount the value of anticipated salvage and subrogation in computing the deduction for losses.
    Total revenues for the year ended Dec. 31, 1991, were a record $42,741,000, up 71 percent from the $25,007,000 posted in 1990. Total revenues for the 1991 fourth quarter were $10,916,000, an increase of 70 percent over $6,414,000 in the 1990 period.
    Results for the 1991 periods reflect the consolidation of Kingsway Financial Services, an insurance holding company based in Toronto, which became a wholly owned subsidiary of Intercargo Corporation in September 1991.
    President and Chief Executive Officer James R. Zuhlke said, "Written premiums increased in the 1991 periods and the combined ratio, a measurement of underwriting profitability, remains very favorable at 90.9 percent compared with 90.2 percent in 1990.
    "We continue to pursue the aggressive marketing of our primary lines which focus on international trade and the acquisition of Kingsway Financial Services enhances our position to market these products in Canada."
    Headquartered in Schaumburg (a Chicago suburb), Intercargo Corporation is a leading provider of specialized insurance coverage for companies involved in international trade.  Its market is primarily importers and exporters, customs brokers and freight forwarders and other global traders.  The primary coverages it underwrites are U.S. Customs Bonds for which it controls about 33 percent of the market, cargo insurance and professional liability for the broker forwarder industry.
                INTERCARGO CORPORATION AND SUBSIDIARIES
                   Consolidated Statements of Income
            (Unaudited; in thousands, except per-share data)
     Periods ended                   Three months          Year
     Dec. 31                         1991    1990      1991     1990
    Revenues:
     Insurance premium income      $9,986  $6,007   $38,858  $23,484
     Net investment and other inc.    930     407     3,883    1,523
     Total revenues                10,916   6,414    42,741   25,007
    Losses and expenses:
     Losses and loss adjustment
      expenses                      4,336   2,200    18,823    9,289
     Policy acquisition costs       3,012   2,471    11,866   10,205
     Other underwriting expenses    1,740     764     5,096    2,450
     Total losses and expenses      9,088   5,435    35,785   21,944
    Operating income before
     federal income tax             1,829     979     6,956    3,063
    Federal income tax:
     Current                          509      90     2,312      716
     Deferred                          68    (213)      272     (259)
     Total federal income tax         577    (123)    2,584      457
    Equity in the earnings of
     Kingsway Financial Services
     (minority interest)               --     197      (655)     564
    Net income                      1,252   1,299(A)  3,717    3,170(A)
    Primary earnings per share      $0.24   $0.28(A)  $0.77    $0.69(A)
    Average number of shares of
     common stock outstanding       5,120   4,600     4,822    4,600
    (A) -- Includes a one-time benefit of certain tax adjustments under the Budget Reconciliation Act of 1990 in the amount of $402,000, or 9 cents per share.
    -0-                     2/7/92
    /CONTACT:  James R. Zuhlke, president and CEO, or Kenneth J. Kranig, chairman of Intercargo, 708-517-2343/
    (ICAR) CO:  Intercargo Corporation ST:  Illinois IN:  INS SU:  ERN TS-CK -- NY025 -- 7697 02/07/92 10:55 EST
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Publication:PR Newswire
Date:Feb 7, 1992
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