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RELIANCE REPORTS SECOND QUARTER RESULTS

 RELIANCE REPORTS SECOND QUARTER RESULTS
 NEW YORK, Aug. 3 /PRNewswire/ -- Reliance Group Holdings, Inc.


(NYSE: REL) today reported net income for the second quarter of 1992 of $23.8 million, or $.31 per share, compared with a net loss of $5.8 million, or $.08 per share, in the second quarter of 1991. Revenues totaled $854.3 million in the second quarter of 1992, versus $850.0 million in the year-ago period.
 For the first six months of 1992, Reliance reported net income of $42.6 million, or $.57 per share, compared with a net loss of $9.3 million, or $.12 per share, in the first six months of 1991. Revenues in the first half of 1992 totaled $1.65 billion, versus $1.69 billion in the 1991 period.
 Results for 1991 have been restated to reflect the adoption at year- end of the equity method of accounting for certain significant investments.
 Reliance said the earnings improvement in 1992 reflects increased profitability of its insurance operations and higher realized gains on investments compared to 1991.
 "Property and casualty insurance operations had significantly better underwriting results in the quarter, while our title and mortgage insurance segment nearly doubled its pretax operating income," said Saul P. Steinberg, chairman and chief executive officer of Reliance. Realized gains in the quarter totaled $34.4 million pretax, versus pretax gains of $11.4 million in last year's second quarter, according to Steinberg.
 Steinberg also said Reliance's balance sheet has been strengthened considerably in 1992.
 "Unrealized investment gains rose more than $60 million in the first half to about $350 million at June 30, while debt was reduced by about $80 million so far this year," he said.
 On July 24, Reliance announced an agreement for the sale of its majority-owned subsidiary, Frank B. Hall, to Aon Corporation for $475 million. Steinberg said the sale, which is expected to close in the fourth quarter, "will be a significant positive for Reliance, generating a one-time gain of about $50 million. The sale also will greatly increase the liquidity of our portfolio and improve the quality of our capital base," he said.
 Reliance Group Holdings, Inc., headquartered in New York, has major property and casualty, life, title and mortgage insurance operations and provides consulting and technical services. Reliance has assets of $11.2 billion and had 1991 revenues of $3.4 billion.
 RELIANCE GROUP HOLDINGS, INC., AND SUBSIDIARIES
 Consolidated Statement of Operations
 (Unaudited; in thousands, except per-share amounts)
 Periods ended Quarter Six Months
 June 30 1992 1991 1992 1991
 Revenues:
 Premiums earned $611,021 $611,272 $1,177,997 $1,213,414
 Net investment income 197,203 195,745 354,086 400,203
 Gain on sales of
 investments 34,378 11,396 63,240 15,319
 Other 29,713 31,567 58,459 60,745
 Total 854,315 849,980 1,653,782 1,689,681
 Claims and expenses:
 Policy claims and
 settlement expenses 309,387 337,102 621,674 660,663
 Policyholders' benefits 141,684 190,416 263,407 392,101
 Policy acquisition
 costs and other
 insurance expenses 302,853 257,291 587,267 509,477
 Interest 28,094 29,306 57,202 60,327
 Other operating exps. 41,779 40,102 78,038 75,496
 Total 823,797 854,217 1,607,588 1,698,064
 Income (loss) from cont.
 opers. before inc. taxes,
 minority interests and
 equity in investee
 companies 30,518 (4,237) 46,194 (8,383)
 Income tax (provision)
 benefit (8,600) 1,758 (12,100) 3,030
 Minority interests (932) (1,020) (1,902) (2,121)
 Equity in investee companies:
 Zenith Natl Insurance
 Corp. 1,727 3,436 3,684 7,119
 Telemundo Group, Inc. -- (5,149) -- (11,933)
 Income (loss) from cont.
 operations 22,713 (5,212) 35,876 (12,288)
 Income (loss) from
 discontinued insurance
 brokerage operations 1,077 (1,749) 6,753 847
 Income (loss) before
 extraordinary items 23,790 (6,961) 42,629 (11,441)
 Extraord. item - early
 extinguishment of debt -- 1,033 -- 1,715
 Extraordinary item of
 investee companies -- 163 -- 377
 Net income (loss) $ 23,790 $ (5,765) $ 42,629 $ (9,349)
 Per-share information:
 Income (loss) from
 discontinued operations $.30 $(.07) $.48 $(.16)
 Income (loss) from
 discontinued insurance
 brokerage operations .01 (.02) .09 .01
 Income (loss) before
 extraordinary items .31 (.09) .57 (.15)
 Extraordinary items -- .01 -- .03
 Net income (loss) $.31 $(.08) $.57 $(.12)
 Average number of common
 and common equivalent
 shares outstanding 75,619 74,450 74,757 74,627
 -0- 8/3/92
 /CONTACT: Brian T. Martin of Reliance, 212-909-1247/
 (REL) CO: Reliance Group Holdings, Inc. ST: New York IN: INS SU: ERN


GK-LR -- NY030 -- 6108 08/03/92 11:37 EDT
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