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PIEDMONT MANAGEMENT COMPANY INC. REPORTS FIRST QUARTER 1993 EARNINGS

 NEW YORK, May 6 /PRNewswire/ -- Piedmont Management Company Inc.


(NASDAQ-NMS: PMAN) today reported 1993 first quarter earnings of $2.05 per share as compared to 38 cents per share in 1992. The 1993 results include $1.29 per share of benefit for the cumulative effect on prior years of adopting Statement of Financial Accounting Standards No. 109 (SFAS 109) -- "Accounting for Income Taxes." Further details and comparative results of operations follow:
 -- Consolidated net income for the period, excluding SFAS 109, was $4.1 million, 76 cents per share, vs. $2 million, 38 cents per share, at March 31, 1992.
 -- The foregoing results include after tax realized capital gains on sales of securities of 28 cents per share in 1993 and 15 cents per share in 1992.
 -- At RECO, earned premiums were on par with a year ago, but net written premiums declined 11 percent, to $26.5 million, primarily as a result of a reduction in property treaty business. This includes business that has been cancelled or re-underwritten to control exposure to catastrophes. The combined ratio for the first quarter, computed on a generally accepted accounting principles basis, was 106.7 percent, down from 113.4 percent a year ago and 131.0 percent for the 12 months of 1992. Statutory policyholders' surplus was $88.7 million, up 25 percent from Dec. 31, 1992, reflecting positive operating results, increased unrealized appreciation on investments and a $10 million capital contribution occurring in the first quarter of 1993.
 Net investment income was $5.2 million, down slightly from the first quarter of 1992.
 -- Investment advisory pretax loss was $9,500 compared to pretax income of $279,000 a year ago. Operating income at Lexington Management Corporation was $280,000, down 37 percent compared to last year, mainly because of lower fee income in 1993, as several pension counseling accounts were terminated subsequent to the first quarter last year. Further, despite growth in new financial product revenues, the combined $285,000 pretax losses at Lexington Capital Management and Lexington Plan Administrators rose due to increases in operating expenses.
 -- Consolidated assets were $647.5 million at March 31, 1993. Stockholders' equity was $116.4 million, up $11.1 million from Dec. 31, 1992. Book value per share was $21.88.
 Piedmont Management Company Inc. is a financial services company whose principal subsidiaries include the Reinsurance Corporation of New York (RECO), a property and casualty reinsurer, and Lexington Management Corporation, an investment advisory and mutual fund management company.
 PIEDMONT MANAGEMENT COMPANY INC.
 Comparative Results
 (Unaudited)
 Three months ended March 31 1993 1992
 Reinsurance Operations:
 Gross premiums earned $ 54,665,372 $ 49,724,943
 Ceded premiums earned (22,975,103) (16,908,172)
 Net premiums earned 31,690,269 32,816,771
 Net investment income 5,183,825 5,309,873
 Realized capital gains 2,275,992 1,025,015
 Total revenues 39,150,086 39,151,659
 Losses and loss expenses 48,329,432 36,666,868
 Reinsurance recoveries (25,292,281) (12,929,742)
 Net losses and loss expenses 23,037,151 23,737,126
 Acquisition & other underwriting exps. 10,762,188 13,476,943
 Total expenses 33,799,339 37,214,069
 Reinsurance operating income 5,350,747 1,937,590
 Investment Advisory Operations:
 Fees earned and other income 3,863,350 3,938,636
 Service and marketing costs 3,872,861 3,660,088
 Investment advisory operating inc. (loss) (9,511) 278,548
 Parent Company:
 Investment and other income 234,331 127,011
 Realized capital losses (7,593) --
 Interest expense 128,051 196,851
 Other corporate expenses 389,741 402,027
 Parent company operating loss (291,054) (471,867)
 Equity in net earnings of investees 676,090 679,265
 Income tax expense (1,626,672) (379,683)
 Inc. bef. cum. effect of accounting chng. 4,099,600 2,043,853
 Cumulative effect of change in method of
 accounting for income taxes 6,937,545 --
 Net income $ 11,037,145 $ 2,043,853
 Average shares for period 5,380,360 5,355,299
 Income before cumulative effect of
 accounting change $ .76 $.38
 Cumulative effect of change in method of
 accounting for income taxes 1.29 --
 Net income per share $2.05 $.38
 Supplementary Data Per Share:
 Income excluding realized capital gains $ .48 $.23
 Realized capital gains net of tax .28 .15
 Cumulative effect of change in method of
 accounting for income taxes 1.29 --
 Net income $2.05 $.38
 -0- 5/6/93
 /CONTACT: Peter Palenzona, CFO of Piedmont Management Company, 212-363-4650/
 (PMAN)


CO: Piedmont Management Company Inc. ST: New York IN: FIN SU: ERN

GK-CK -- NY052 -- 5380 05/06/93 11:30 EDT
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Date:May 6, 1993
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