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McM CORPORATION REPORTS NINE MONTHS AND THIRD QUARTER RESULTS

 RALEIGH, N.C, Nov. 11 /PRNewswire/ -- McM Corporation (NASDAQ: MCMC), a Raleigh based insurance holding company, reported a consolidated net loss for the nine months ended Sept. 30, 1993, of $840,000 or $.18 per share. These results compare to a net loss of $2,920,000 or $.62 per share for the first nine months of 1992. The consolidated net loss for the third quarter of 1993 was $73,000 or $.02 per share compared to a net loss of $3,364,000 or $.72 per share during the same period last year. The net loss for the period ended Sept. 30, 1993, includes the $2.5 million litigation settlement reported in the second quarter of 1993. These results of operations include McM's property and casualty subsidiaries, Occidental Fire & Casualty Company of North Carolina and Wilshire Insurance Company.
 Ongoing operations of the property and casualty subsidiaries for the third quarter of 1993 continued to show the improvement experienced in prior quarters. These results reflect a significant decrease in claims severity in the company's commercial automobile business. In addition, the results through Sept. 30, 1993, have not been adversely affected by claims development which had emerged in the prior year.
 Consolidated gross revenues for the nine months ended Sept. 30, 1993, were $44,567,000 compared to $49,689,000 for the same period in 1992. Premium revenue decreased approximately $4,942,000 in relation to that of the prior year reflecting an overall increase in premiums ceded to the company's reinsurers. Net investment income was $681,000 less than the same period last year resulting from a reduction in invested balances and the continuing effects of declines in investment rates. Included in total revenues are realized investment gains of $578,000 through the third quarter of 1993 compared to realized gains of $79,000 for the same period in 1992.
 Shareholders' equity at Sept. 30, 1993, was $18,665,000 or $3.99 per share compared to $19,506,000 or $4.17 per share at Dec. 31, 1992. Consolidated assets totalled $167,540,000 at Sept. 30, 1993, compared to $187,006,000 at Dec. 31, 1992.
 McM CORPORATION
 Financial Highlights
 Sept. 30, Dec. 31, Percent
 1993 1992 Change
 (Thousands of dollars)
 Assets $167,540 $187,006 -10.4
 Shareholders' Equity $18,665 $19,506 -4.3
 Report for the Nine Months and Quarter Ended Sept. 30, 1993
 (Unaudited)
 Nine Months Ended Three Months Ended
 Sept. 30, Sept. 30,
 1993 1992 1993 1992
 (Thousands of dollars
 except per share data)
 Premiums $39,153 $44,095 $12,031 $13,693
 Gross Investment Income 4,703 5,407 1,564 1,799
 Realized Investment Gains 578 79 10 70
 Other Income 133 108 40 26
 TOTAL REVENUES 44,567 49,689 13,645 15,588
 LOSS FROM CONTINUING OPERATIONS (840) (2,946) (73) (3,364)
 Gain on Disposal of Life and
 Health Insurance Segment 0 26 0 0
 NET (LOSS) INCOME ($840) ($2,920) ($73) ($3,364)
 PER SHARE DATA:
 (Loss) Income Per Share ($0.18) ($0.62) (0.02) ($0.72)
 -0- 11/11/93
 /CONTACT: Stephen L. Stephano, executive vice president and chief operating officer, of McM Corporation, 919-833-1600/
 (MCMC)


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

CM-SB -- CH014 -- 3395 11/11/93 16:46 EST
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Publication:PR Newswire
Date:Nov 11, 1993
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