RELIANCE GROUP HOLDINGS REPORTS FIRST-QUARTER RESULTS
RELIANCE GROUP HOLDINGS REPORTS FIRST-QUARTER RESULTS NEW YORK, April 28 /PRNewswire/ -- Reliance Group Holdings, Inc.
(NYSE: REL), today reported net income of $18.8 million, or 25 cents per share, for the first quarter of 1992, compared with a net loss of $3.6 million, or 5 cents per share, in the first quarter of 1991.
The 1991 results were restated to reflect the adoption at year-end of the equity method of accounting for certain significant investments. Revenues totaled $799.5 million in the 1992 first quarter, vs. $839.7 million in the year-earlier period. Included in the results for both periods are the earnings of Frank B. Hall & Co., Inc., which has been classified as a discontinued operation pending its divestiture. Hall accounted for income of $5.7 million, or 7 cents per share, in the 1992 first quarter, vs. income of $2.6 million, or 3 cents per share, in the 1991 period. Realized gains on sales of investments totaled $28.9 million pretax in the 1992 first quarter, vs. $3.9 million in the 1991 period. Reliance's insurance operations posted mixed results in the quarter. Title and mortgage insurance generated significantly higher pretax income, mainly due to increased refinancing activity in residential real estate. However, the improvement was more than offset by lower operating profits in the property and casualty and life insurance segments. "Our largest business, property and casualty insurance, continues to be adversely affected by competitive pressures and soft pricing in many lines and, as a result, we reported a combined ratio of 108.2 percent in the first quarter of 1992," commented Saul P. Steinberg, Reliance Group's chairman and chief executive officer. "We are confident that our focus on specialized lines of business and market niches will benefit the company long-term, particularly when the pricing environment begins to improve," Steinberg said. RELIANCE GROUP HOLDINGS, INC. & SUBSIDIARIES Consolidated Statement of Operations (Unaudited; in thousands, except per-share amounts) Quarters ended March 31 1992 1991 Revenues: Premiums earned $566,976 $602,142 Net investment income 174,883 204,458 Gain on sales of investments 28,862 3,923 Other 28,746 29,178 Total 799,467 839,701 Claims and expenses: Policy claims and settlement expenses 312,287 323,561 Policyholders' benefits 121,723 201,685 Policy acquisition costs and other insurance expenses 284,414 252,186 Interest 29,108 31,021 Other operating expenses 36,259 35,394 Total 783,791 843,847 Income (loss) from continuing operations before income taxes, minority interests and equity in investee companies 15,676 (4,146) Income tax (provision) benefit (3,500) 1,272 Minority interests (970) (1,101) Equity in investee companies: Zenith National Insurance Corp. 1,957 3,683 Telemundo Group, Inc. -- (6,784) Income (loss) from continuing operations 13,163 (7,076) Income from discontinued insurance brokerage operations 5,676 2,596 Income (loss) before extraordinary items 18,839 (4,480) Extraordinary item - early extinguishment of debt -- 682 Extraordinary item of investee companies -- 214 Net income (loss) 18,839 (3,584) Per-share information: Income (loss) from continuing operations $.18 $(.09) Income from discontinued insurance brokerage operations .07 .03 Income (loss) before extraordinary item .25 (.06) Extraordinary items -- .01 Net income (loss) .25 (.05) Average number of common and common equivalent shares outstanding 74,099 74,807 -0- 4/28/92 /CONTACT: Brian T. Martin of Reliance Group Holdings, 212-909-1247/ (REL) CO: Reliance Group Holdings, Inc. ST: New York IN: INS SU: ERN
GK-CK -- NY045 -- 3691 04/28/92 10:57 EDT
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|Date:||Apr 28, 1992|
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