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NUCORP REPORTS 26 PERCENT INCREASE IN THIRD QUARTER NET INCOME

 NUCORP REPORTS 26 PERCENT INCREASE IN THIRD QUARTER NET INCOME
 CHICAGO, Nov. 9 /PRNewswire/ -- Nucorp, Inc. (NASDAQ: NUCO) today reported net income of $2.7 million for the third quarter ended Sept. 30, 1992, a 26 percent increase compared to net income of $2.1 million during the same period last year. Nine-month net income was 19 percent higher at $6.2 million compared to $5.2 million in the nine- month period ended Sept. 30, 1991.
 Due to an increase in weighted average common and common equivalent shares outstanding, on a fully diluted per share basis, earnings were 18 cents in the third quarter of 1992 compared to 23 cents last year. Earnings for the nine-month period were unchanged at 57 cents.
 Due in large part to the Aug. 14, 1992, acquisition of Western Surety Company, consolidated revenues rose 108 percent in the third quarter of 1992 to $17.4 million from $8.4 million. Nine month revenues increased 28 percent to $33.1 million in 1992 from $25.6 million last year. Western Surety contributed $9.6 million to the increase in both periods. In the nine-month period of 1992 the revenue increases from Western Surety were offset by lower investment income and realized gains at United Capitol Insurance Company and lower oil and gas revenues.
 Pretax income rose to $4.8 million in the third quarter of 1992 from $3.2 million for the three months ended Sept. 30, 1991. For the nine months, pretax income rose to $10.1 million from $7.9 million.
 In both the three-month period and nine-month periods of 1992, Western Surety contributed $1.3 million to the pretax income increase. In the nine-month period of 1992, United Capitol also contributed $1.4 million to the increase while the oil and gas and corporate operations reduced pretax income by approximately $0.6 million.
 Expenses increased to $12.6 million in the three-month period of 1992 from $5.2 million in 1991. Nine-month expenses increased to $23.3 million this year versus $18.0 million last year. The increases in expenses were also, in large measure, caused by the inclusion of Western Surety's results since its acquisition.
 Expenses at Western Surety included net losses and loss adjustment expense of $1.1 million; net commission and brokerage expenses of $3.0 million; other acquisition and operating expenses of $3.1 million; interest expense of $0.6 million and purchase accounting amortization of $0.5 million.
 In the three-month period of 1992, United Capitol recognized $0.2 million ($0.6 million in the nine-month period) of contingent reinsurance commission income compared to $0.7 million in the prior year's third quarter, causing net commission and brokerage expenses to increase in both 1992 periods relative to 1991. All other expenses decreased at United Capitol in both the three- and nine-month periods of 1992.
 The 1992 three-month direct written premiums increased to $14.9 million from $5.5 million in 1991. Western Surety accounted for $7.5 million of that increase while United Capitol accounted for $1.9 million. The increase at United Capitol is a result of increased broker submissions and writings following United Capitol's receipt in May 1991 of its first A.M. Best Company rating and growth in writings of asbestos abatement liability business on an occurrence form.
 The statutory combined ratio for Western Surety was 89.4 percent in the nine-month period of 1992, compared to 85.3 percent in the same period of 1991. Nine-month statutory loss ratio was 18.5 percent in 1992, compared to 15.8 percent in 1991. Nine-month statutory expense ratio was 70.9 percent in 1992 and 69.5 percent in 1991.
 United Capitol's statutory combined ratio was 75.9 percent in the nine-month period of 1992, compared to 84.5 percent in 1991. Statutory loss ratio in the nine-month period of 1992 was 55.2 percent compared to 59.1 percent in 1991 while statutory expense ratio was 20.7 percent in 1992 and 25.4 percent in 1991.
 "Nucorp's earnings were significantly better than we initially expected them to be this quarter due to very favorable loss development at United Capitol. The integration of Western Surety into Nucorp's operations is substantially completed. We are cautiously optimistic that the property and casualty markets are beginning to show signs of improvements and the Nucorp will then truly begin to capitalize on its financial and human resources," said Bruce Esselborn, president of Nucorp.
 Nucorp is involved primarily in specialty property and casualty insurance, through United Capitol Insurance Company and Western Surety 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. Western Surety Company is rated A plus (Superior) by A.M. Best and is licensed in all 50 states and the District of Columbia writing small fidelity and non-contract surety bonds.
 NUCORP, INC. AND SUBSIDIARIES
 EARNINGS RELEASE DATA
 FOR THE PERIODS ENDED SEPTEMBER 30
 (Amounts In Thousands Except Per Share Amounts)
 Three Months Ended Sept. 30,
 1992 1991
 REVENUES:
 INSURANCE:
 Net Earned Premiums $12,318 $ 3,747
 Net Investment Income 4,007 3,377
 Realized Investment Gain 572 183
 OIL AND GAS 233 930
 CORPORATE INVESTMENT INCOME 315 149
 17,445 8,386
 EXPENSES:
 INSURANCE:
 Net Losses and Loss Adjustment Expenses 3,115 2,214
 Net Commissions and Brokerage 3,141 (399)
 Other Acquisition and Operating Expenses 3,687 807
 Interest Expense 1,306 1,238
 Amortization Expense 628 149
 OIL AND GAS:
 Production, Exploration and Gas Gathering
 and Processing 128 621
 Depletion and Depreciation 87 215
 General and Administrative 95 45
 CORPORATE EXPENSE 433 283
 12,620 5,173
 GAIN ON SALE OF ASSETS (53) --
 INCOME BEFORE INCOME TAXES 4,772 3,213
 INCOME TAXES 2,093 1,093
 NET INCOME $ 2,679 $ 2,120
 WEIGHTED AVERAGE COMMON AND COMMON
 EQUIVALENT SHARES OUTSTANDING 13,659 10,666
 NET INCOME PER SHARE $0.18 $0.23
 Nine Months Ended Sept. 30,
 1992 1991
 REVENUES:
 INSURANCE:
 Net Earned Premiums $19,897 $11,806
 Net Investment Income 10,262 9,991
 Realized Investment Gain 639 587
 OIL AND GAS 1,667 3,001
 CORPORATE INVESTMENT INCOME 616 432
 33,081 25,817
 EXPENSES:
 INSURANCE:
 Net Losses and Loss Adjustment Expenses 7,534 6,975
 Net Commissions and Brokerage 3,288 264
 Other Acquisition and Operating Expenses 5,305 2,587
 Interest Expense 3,092 3,918
 Amortization Expense 927 702
 OIL AND GAS:
 Production, Exploration and Gas Gathering
 and Processing 1,452 2,008
 Depletion and Depreciation 385 534
 General and Administrative 191 155
 CORPORATE EXPENSE 1,080 821
 23,254 17,964
 GAIN ON SALE OF ASSETS 243 --
 INCOME BEFORE INCOME TAXES 10,070 7,853
 INCOME TAXES 3,894 2,670
 NET INCOME $ 6,176 $ 5,183
 WEIGHTED AVERAGE COMMON AND COMMON
 EQUIVALENT SHARES OUTSTANDING 10,835 10,625
 NET INCOME PER SHARE $0.57 $0.57
 -0- 11/9/92
 /CONTACT: Kirk Brewer, 404-843-5599, or Susan Obuchowski, 312-466-4010, of Equity Group for Nucorp/
 (NUCO) CO: Nucorp, Inc. ST: Illinois IN: INS SU: ERN


PS -- NY012 -- 8500 11/09/92 08:34 EST
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Date:Nov 9, 1992
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