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RELIANCE GROUP HOLDINGS REPORTS FIRST QUARTER RESULTS

 NEW YORK, April 27 /PRNewswire/ -- Reliance Group Holdings, Inc. (NYSE: REL) today reported income from continuing operations for the first quarter of 1993 of $12.4 million, or $.14 per share, compared to $3.9 million, or $.05 per share, in the first quarter of 1992.
 Net income was $28.3 million, or $.32 per share, in the first quarter of 1993, including a one-time benefit of $15.9 million, or $.18 per share, from an accounting change related to income taxes. In the 1992 first quarter, Reliance reported net income of $18.8 million, or $.25 per share, which included income from discontinued operations of $14.9 million, or $.20 per share. Revenues totaled $677.3 million in the 1993 first quarter, versus $652.1 million in the 1992 period.
 Reliance said the year-to-year improvement in results from continuing operations was attributable to a higher level of realized capital gains, principally from the company's equity investment portfolio.
 Operating results of Reliance's largest business, property and casualty insurance, were adversely affected by higher catastrophe losses, including those related to a major storm in the Northeast, and by underwriting losses in personal lines. As previously announced, Reliance expects to substantially complete its withdrawal from personal lines this year and become essentially a commercial lines underwriter.
 Reliance's property and casualty operations produced a combined ratio (the ratio of claims and expenses to earned premiums) of 112.2 percent in the quarter, of which 3.7 percent is attributable to losses in personal lines. Commercial lines had a combined ratio of 108.5 percent, including 2.7 percent from catastrophe losses.
 Title insurance profits were lower in the first quarter of 1993 versus the prior year, but Reliance said it finished the quarter with a record backlog of title business, which should benefit second quarter results.
 Income from discontinued operations in the 1992 first quarter includes results of United Pacific Life Insurance Company, which Reliance previously announced it has agreed to sell for total estimated consideration of $550 million; and Frank B. Hall & Co., Inc., which was sold in November 1992 for total proceeds of approximately $470 million, subject to closing balance sheet adjustments. Both transactions are part of Reliance's overall strategy to strengthen the capital base of its insurance operations.
 Headquartered in New York City, Reliance Group Holdings, Inc. has major operations in commercial property and casualty insurance and title insurance. Total 1992 revenues were $2.76 billion and assets at year end were $5.76 billion.
 RELIANCE GROUP HOLDINGS, INC. AND SUBSIDIARIES
 Consolidated Statement of Income (Unaudited)
 (In thousands, except per-share amounts)
 Quarter ended March 31 1993 1992
 Revenues:
 Premiums earned $550,028 $557,075
 Net investment income 62,733 53,043
 Gain on sales of investments 35,582 13,217
 Other 28,997 28,746
 Total revenues 677,340 652,081
 Claims and expenses:
 Policy claims and settlement expenses 297,856 312,287
 Policy acquisition costs and
 other insurance expenses 295,522 272,684
 Interest 27,553 29,108
 Other operating expenses 39,323 36,259
 Total claims and expenses 660,254 650,338
 Income from continuing operations
 before income taxes, minority interests
 and equity in investee companies 17,086 1,743
 Income tax (provision) benefit (5,300) 1,217
 Minority interest (930) (970)
 Equity in investee companies 1,500 1,957
 Income from continuing operations 12,356 3,947
 Income from discontinued life
 insurance operations -- 9,216
 Income from discontinued insurance
 brokerage operations -- 5,676
 Income before cumulative effect of
 change in accounting for income taxes 12,356 18,839
 Cumulative effect of change in
 accounting for income taxes 15,911 --
 Net income $ 28,267 $ 18,839
 Per share information:
 Income from continuing operations $ .14 $ .05
 Income from discontinued operations -- .20
 Income before cumulative effect of
 change in accounting for income taxes .14 .25
 Cumulative effect of change in
 accounting for income taxes .18 --
 Net income .32 .25
 Average number of common and
 common equivalent shares outstanding 88,935 74,099
 -0- 4/27/93
 /CONTACT: Brian T. Martin, vice president-communications of Reliance Group Holdings, Inc., 212-909-1247/
 (REL)


CO: Reliance Group Holdings, Inc. ST: New York IN: INS SU: ERN

TM-OS -- NY109 -- 1575 04/27/93 16:23 EDT
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Publication:PR Newswire
Date:Apr 27, 1993
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