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RELIANCE NEGOTIATING TO SELL ITS LIFE INSURANCE OPERATIONS

 NEW YORK, March 29 /PRNewswire/ -- Reliance Group Holdings, Inc. (NYSE: REL) today reported that it is negotiating for the sale of its United Pacific Life Insurance Company (UPL) subsidiary as part of its strategic plan to strengthen the capital base of its property and casualty insurance operations.
 Reliance said it has had serious negotiations with two potential buyers of UPL, one of which offered approximately $525 million. However, agreement on the terms of the transaction could not be reached and Reliance has been negotiating with another potential buyer offering a higher price. Reliance said the first bidder has commenced litigation seeking to require Reliance to sell UPL to it. Reliance believes the litigation is without merit and is pursuing a transaction with the other potential buyer.
 Reliance will classify UPL as a discounted operation in its 1992 financial statements. While there is no assurance that a sale will occur, based upon the anticipated sale price, Reliance said it expects to record a charge in the fourth quarter of 1992 and to report a net loss for the period. However, the statutory surplus of Reliance Insurance Company, UPL's direct parent, would increase significantly from the year end 1992 level of $858 million.
 Because the UPL sale is still being negotiated, Reliance said it will postpone reporting 1992 financial results until no later than April 15, 1993.
 Reliance said it made the strategic decision to sell its life insurance business and redeploy the capital to its property and casualty and title insurance operations, where it sees more lucrative opportunities and the potential for higher returns.
 -0- 3/29/93
 /CONTACT: Brian T. Martin, vice president - communications of Reliance Group Holdings, 212-909-1247/
 (REL)


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

AH -- NY084 -- 0635 03/29/93 15:36 EST
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Publication:PR Newswire
Date:Mar 29, 1993
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