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LIFE USA ANNOUNCES A 74 PERCENT INCREASE IN SIX MONTHS EARNINGS

 LIFE USA ANNOUNCES A 74 PERCENT INCREASE IN SIX MONTHS EARNINGS
 MINNEAPOLIS, July 22 /PRNewswire/ -- Life USA Holding, Inc. (NASDAQ-NMS: LUSA), a Minneapolis-based insurance holding company, today reported consolidated net income for the six months ended June 30, 1992, of $2,676,756, or $.19 per share. This represents a 74 percent increase over the same period in 1991, when consolidated net income was $1,541,153, or $.11 per share.
 Total consolidated revenues reported for the first six months of 1992 were $61,422,539, representing a 24 percent increase over the $49,350,562 reported for the same period in 1991. The company reported total collected life and annuity premiums of $296,182,078 for the first six months of 1992, an increase of 16 percent over the same period in 1991.
 During the first six months of 1992, Life USA Holding, Inc. reported an increase in consolidated assets of $84,783,834 to $396,455,840 at June 30, 1992, compared with $311,672,006 at the end of 1991.
 The company reported second quarter consolidated net income of $858,340, or $.06 per share, compared to $1,150,682, or $.08 per share for the same period in 1991.
 Net income was affected by a previously reported tax adjustment of $470,815, and by assessments levied by state guarantee associations of $114,726, to help cover the losses of failed insurance companies. Without these charges, the company would have reported net income of $1,443,880, or $.10 per share. Second quarter revenues for 1992 were $31,420,948, a 21 percent increase over revenues for the same period in 1991.
 One other factor impacting net income was action on the part of the company to retain more of the new business written than it did in 1991. While the increased retention of new business will enhance future income, a loss is generated in the year it is sold.
 In commenting on the results, Robert W. MacDonald, chairman and CEO of Life USA, said, "We are very pleased with the first six months of 1992. Obviously, we would have preferred more favorable earnings results in the second quarter, but overall the quarter was a good one. New sales are healthy, recruiting is steady and expense controls are taking effect. We believe that the company is positioned for a strong third quarter."
 Life USA Holding, Inc., is an agent/employee-owned insurance holding company. LifeUSA Insurance Company, the sole subsidiary of Life USA, is represented by over 34,000 field agents and 270 home office employees. Life USA Holding, Inc. common stock is a designated stock on the NASDAQ National Market, trading under the symbol LUSA.
 LIFE USA HOLDING, INC.
 CONDENSED CONSOLIDATED STATEMENT OF INCOME
 (Dollars in thousands, except per-share amounts)
 (Unaudited)
 Three Months Ended Six Months Ended
 6/30/92 6/30/91 6/30/92 6/30/91
 Revenues:
 Net investment income $6,400 $4,417 $11,928 $7,700
 Commissions and expense
 allowances on ceded
 reinsurance, net 22,873 20,943 45,598 40,124
 Other income 2,148 590 3,897 1,527
 Total revenues 31,421 25,950 61,423 49,351
 Expenses:
 Commissions 14,230 14,505 28,046 27,528
 Interest credited and
 other benefits to
 policyholders 6,134 3,303 11,391 6,361
 Interest expense 209 70 392 172
 Other operating expenses 9,438 6,584 17,252 13,231
 Total expenses 30,011 24,462 57,081 47,292
 Income before taxes 1,410 1,488 4,342 2,059
 Income taxes 552 337 1,665 524
 Income before
 extraordinary item 858 1,151 2,677 1,535
 Extraordinary item -- -- -- 6
 Net income $858 $1,151 $2,677 $1,541
 Net income per share $.06 $.08 $.19 $.11
 Average number of shares
 issued and outstanding 14,222,669 14,050,843 14,209,590 14,007,438
 -0- 7/22/92
 /CONTACT: Robert W. MacDonald of Life USA, 612-591-5201/
 (LUSA) CO: Life USA Holding, Inc. ST: Minnesota IN: INS SU: ERN


KH -- MN007 -- 1845 07/22/92 11:21 EDT
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Publication:PR Newswire
Date:Jul 22, 1992
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