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NUCORP REPORTS 14 PERCENT INCREASE IN SECOND QUARTER AND SIX-MONTH NET INCOME

 NUCORP REPORTS 14 PERCENT INCREASE IN SECOND QUARTER
 AND SIX-MONTH NET INCOME
 CHICAGO, July 15 /PRNewswire/ -- Nucorp Inc. (NASDAQ:NUCO) today reported net income of $1.9 million during the second quarter ended June 30, 1992, a 14 percent increase compared to net income of $1.7 million during the same period last year. Six-month net income also was 14 percent higher at $3.5 million, compared to $3.1 million in the six- month period ended June 30 last year.
 On a per share basis, earnings were 22 cents in the second quarter of 1992, compared to 18 cents in the second quarter of 1991. Earnings per share for the first six months were 39 cents in 1992, compared to 34 cents in the same period of 1991.
 Nucorp's consolidated second quarter 1992 revenues declined to $7.7 million, from $8.3 million during the same quarter a year earlier. Six- month consolidated revenues declined to $15.6 million from $17.3 million a year ago.
 Pretax income rose to $2.9 million in the second quarter of 1992, from $2.5 million in the second quarter of 1991. For the first half, pretax income was $5.3 million in 1992 compared to $4.6 million in 1991.
 Second quarter and six-month earnings improved in Nucorp's insurance segment, despite a decline in revenues resulting from continuing soft market conditions.
 Included in the earnings increase were lower interest expense, lower amortization expense, and higher underwriting income due in part to the recognition of $200,000 of contingent reinsurance commission income in the second quarter of 1992 ($400,000 in the first half of the current year).
 The company pointed out that while net earned premiums declined, direct written premiums in the first half of 1992 were about 7 percent higher than in the first half of 1991. Second quarter 1992 net earned premiums were essentially unchanged from the second quarter of 1991, while direct written premiums were about 16 percent lower than in the second quarter of 1991, due to prevailing soft market conditions.
 The statutory combined ratio Nucorp's specialty property and casualty insurance company, United Capitol, was 81.2 percent in the second quarter of 1992, compared to 91.2 percent in the corresponding period of 1991. Second quarter statutory loss ratio decreased to 58.3 percent in 1992 from 59.1 percent in 1991. Second quarter expense ratio was 22.9 percent in 1992 and 32.1 percent in 1991.
 Pretax income in Nucorp's oil and gas segment was positively affected by the $296,000 gain on the sales of approximately two-thirds of the company's oil and gas properties during the second quarter of 1992, and negatively affected by lower oil and gas prices. The oil and gas segment reported pretax income of $138,000 in the second quarter of 1992, compared to pretax loss of $80,000 in the second quarter of 1991. The oil and gas segment had pretax income of $12,000 in the first half of 1992, compared to pretax income of $255,000 in the first half of 1991.
 Nucorp is involved primarily in specialty property and casualty insurance, through United Capitol Insurance Company. United Capitol is rated A- (Excellent) by A.M. Best Company, and conducts business principally as an excess and surplus lines insurer in all 50 states, the District of Columbia and Puerto Rico.
 NUCORP INC.
 (Amounts in Thousands Except Per Share Amounts)
 3 Months Ended June 30
 1992 1991
 Revenues:
 Insurance:
 Net Earned Premiums $3,830 $3,855
 Net Investment Income 3,058 3,289
 Realized Investment Gain 34 316
 Oil and Gas 609 754
 Corporate Investment Income 175 133
 Total 7,706 8,347
 Expenses:
 Insurance:
 Net Losses and Loss Adjustment Expenses 2,144 2,259
 Net Commissions and Brokerage 78 289
 Other Acquisition and Operating Expenses 793 819
 Interest Expense 857 1,261
 Amortization Expense 150 149
 Oil and Gas:
 Production, exploration and gas gathering
 and processing 590 666
 Depletion and Depreciation 111 85
 General and Administrative 66 83
 Corporate Expense 354 219
 Total 5,143 5,830
 Gain on Sale of Assets 296 ---
 Income Before Income Taxes 2,859 2,517
 Income Taxes 972 855
 Net Income 1,887 1,662
 Weighted Average Common and Common Equivalent
 Shares Outstanding 9,447 10,845
 Net Income Per Share $0.22 $0.18
 (Amounts In Thousands Except Per Share Amounts)
 6 Months Ended June 30,
 1992 1991
 Revenues:
 Insurance:
 Net Earned Premiums $7,579 $8,059
 Net Investment Income 6,255 6,614
 Realized Investment Gain 67 404
 Oil and Gas 1,434 1,918
 Corporate Investment Income 301 283
 Total 15,636 17,278
 Expenses:
 Insurance:
 Net Losses and loss Adjustment Expenses 4,419 4,761
 Net Commissions and Brokerage 147 663
 Other Acquisition and Operating Expenses 1,618 1,780
 Interest Expense 1,786 2,680
 Amortization Expense 299 553
 Oil and Gas:
 Production, exploration and gas gathering
 and processing 1,324 1,234
 Depletion and Depreciation 298 319
 General and Administrative 96 110
 Corporate Expense 647 538
 Total 10,634 12,638
 Gain on Sale of Assets 296 ---
 Income Before Income Taxes 5,298 4,640
 Income Taxes 1,801 1,577
 Net Income 3,497 3,063
 Weighted Average Common and Common Equivalent
 Shares Outstanding 8,984 10,604
 Net /Income Per Share $0.39 $0.34
 -0- 7/15/92
 /CONTACT: Kirk Brewer, 312-258-4358 or Susan Obuchowski, 312-466-4010, for Nucorp/
 (NUCO) CO: Nucorp Inc. ST: Illinois IN: INS SU: ERN


TM -- NY109 -- 9810 07/15/92 20:32 EDT
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Date:Jul 15, 1992
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