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LIFE USA HOLDING CONTINUES STRONG GROWTH -- REPORTS RECORD INCOME, REVENUES AND PREMIUMS FOR FIRST QUARTER

 MINNEAPOLIS, April 21 /PRNewswire/ -- Life USA Holding, Inc. (NASDAQ-NMS: LUSA) and its wholly owned subsidiary, LifeUSA Insurance Company, today reported that consolidated net income for the first quarter ended March 31, 1993, increased 49 percent to $2.7 million, compared to $1.8 million for the same period in 1992. Earnings per share in the first quarter increased 38 percent to $.18 per share, compared to $.13 per share one year ago. First quarter consolidated total revenues were $41.6 million(a), a 38 percent increase over the $30.1 million reported for the first quarter in 1992. The company reported total collected first quarter premiums of $206.5 million, a 41 percent increase over $146.8 million of premium collected during the same period in 1992 (includes premiums collected under an agreement with Allianz Life Insurance Company of North America, formerly North American Life and Casualty Company).
 Commenting on the results, Robert W. MacDonald, chairman and CEO of Life USA said, "Obviously, we are pleased by first quarter activity. The results indicate that the company continues to be in a high-growth mode and provide momentum for the potential of continued good results in 1993."
 As of March 31, 1993, the company reported consolidated assets of $596.3 million(a) and shareholders' equity of $45.2 million. These figures represent a 67 percent growth in assets and a 48 percent increase in shareholders' equity from March 31, 1992.
 LifeUSA agent recruiting activity continues to be strong. In the first quarter of 1993, LifeUSA contracted 4,696 new agents, a record for any single quarter. As of March 31, 1993, the number of agents contracted to represent LifeUSA totaled 42,789. This is an increase of 11,343 over the 31,446 agents under contract one year ago.
 Life USA Holding, Inc. completed a 4.72 million share offering on April 1, 1993. The offering resulted in net proceeds to the company of $44.4 million. This increase in equity and outstanding shares will be reflected in the second quarter financial results of the company.
 Life USA Holding, Inc. is a Minneapolis-based employee/agent owned insurance holding company. LifeUSA Insurance Company, a subsidiary of Life USA Holding, is represented nationally by over 42,000 agents and 295 home office employees. Total insurance in force now exceeds $6 billion. Life USA Holding, Inc. common stock is traded on the NASDAQ National Market using the symbol LUSA.
 (a) Consolidated total revenues and assets for the first quarter of 1993 do not reflect the adoption of Financial Accounting Standards No. 113 (FAS 113). FAS 113, accounting and reporting requirements for reinsurance contracts, will be reflected in the company's first quarter Form 10Q filing with the SEC. The adoption of this accounting standard has no impact on the net income of the company.
 LIFE USA HOLDING, INC.
 Consolidated Statement of Income
 (dollars in thousands, except per share amounts)
 Three Months Ended Percent Change
 3/31/93 3/31/92 1992 to 1993
 (Unaudited)
 Revenues:
 Net investment income $9,629 $5,528 74.2
 Net realized gains
 on investments 516 -- N/A
 Commissions and expense
 allowances on ceded
 reinsurance, net 28,685 22,725 26.2
 Other income 2,742 1,797 52.6
 Total revenues 41,572 30,050 38.3
 Expenses:
 Commissions 17,519 13,816 26.8
 Interest credited and other
 benefits to policyholders 8,836 5,305 66.6
 Amortization of deferred
 policy acquisition costs 1,546 200 673.0
 Taxes, licenses and fees 985 766 28.6
 Interest expense 189 218 (13.3)
 Other operating expenses 8,172 6,813 19.9
 Total expenses 37,247 27,118 37.4
 Income before taxes 4,325 2,932 47.5
 Income taxes 1,618 1,114 45.2
 Net income $2,707 $1,818 48.9
 Net income per share $.18 $.13 38.5
 Average number of shares
 issued and outstanding 15,188,098 14,215,787 --
 -0- 4/21/93
 /CONTACT: Robert W. MacDonald of Life USA Holding, 612-591-5201/
 (LUSA)


CO: Life USA Holding, Inc. ST: Minnesota IN: INS SU: ERN

AL -- MN017 -- 8815 04/21/93 14:03 EDT
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Publication:PR Newswire
Date:Apr 21, 1993
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