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RELIANCE REPORTS THIRD QUARTER RESULTS

 RELIANCE REPORTS THIRD QUARTER RESULTS
 NEW YORK, Nov. 4 /PRNewswire/ -- Reliance Group Holdings, Inc.


(NYSE: REL) today reported net income of $1.3 million, or $.02 per share of common stock, for the third quarter of 1992, compared with a net loss of $126.3 million, or $1.71 per share, in the third quarter of 1991. Revenues for the 1992 third quarter totaled $873.6 million, versus $757.7 million in the 1991 period.
 Results for the 1992 third quarter reflect significantly higher catastrophe losses in property and casualty insurance operations, including $41.7 million pre-tax from Hurricane Andrew, which reduced net income by $27.5 million, or $.36 per share.
 Gains on sales of investments totaled $50.8 million pre-tax in the 1992 third quarter, versus a pre-tax loss on sales of investments of $31.0 million in the 1991 period.
 Results for the year-earlier third quarter include a loss from discontinued operations of $9.9 million, or $.14 per share, and an after-tax charge of $103 million or $1.40 per share, to increase property and casualty insurance loss reserves.
 For the first nine months of 1992, Reliance reported net income of $43.9 million, or $.59 per share, versus a net loss of $135.7 million, or $1.83 per share, in the 1991 period. Revenues totaled $2.53 billion, versus $2.45 billion in the prior year.
 Results for the 1992 nine-month period include income of $6.8 million, or $.09 per share, from discontinued operations. For the 1991 nine months, discontinued operations generated a loss of $9.1 million, or $.12 per share.
 Reliance said operating results continue to be affected by generally weak market conditions and unusually high catastrophe losses in its largest business, property and casualty insurance.
 "Our strategy of focusing on specialized markets and products is lessening the impact of the industry-wide down-cycle on our property and casualty segment, and we remain confident about the long-term prospects for the business," commented Saul P. Steinberg, chairman and chief executive officer of Reliance.
 The company's title insurance segment reported a solid increase in pre-tax operating profits in the quarter versus the prior year, according to Mr. Steinberg.
 Mr. Steinberg also noted that Reliance recently completed the sale of its discontinued insurance brokerage operation, Frank B. Hall & Co., for total consideration of approximately $470 million. In addition, Reliance sold its mortgage insurance subsidiary in a public offering of common stock.
 "Both transactions have significant benefits for Reliance and are part of our larger strategy to strengthen the overall financial position of the company," Mr. Steinberg said.
 Reliance Group Holdings, headquartered in New York City, has major property and casualty, life, and title insurance operations and provides consulting and technical services. Reliance has assets of $11.5 billion and had 1991 revenues of $3.4 billion.
 RELIANCE GROUP HOLDINGS, INC. AND SUBSIDIARIES
 Consolidated Statement of Operations
 (In thousands, except per-share amounts, unaudited)
 Periods ended Quarter Nine months
 Sept. 30 1992 1991 1992 1991
 Revenues:
 Premiums earned $620,879 $574,742 $1,798,876 $1,788,156
 Net investment income 172,437 183,142 526,523 583,345
 Gain (loss) on sales
 of investments 50,770 (31,016) 114,010 (15,697)
 Other 29,542 30,852 88,001 91,597
 Total 873,628 757,720 2,527,410 2,447,401
 Claims and Expenses:
 Policy claims and
 settlement expenses 383,617 461,526 1,005,291 1,122,189
 Policyholders' benefits 116,078 133,686 379,485 525,787
 Policy acquisition costs
 and other insurance
 expenses 306,841 306,704 894,108 816,181
 Interest 26,689 28,784 83,891 89,111
 Other operating expenses 38,378 38,611 116,416 114,107
 Total 871,603 969,311 2,479,191 2,667,375
 Income (loss) from continuing
 operations before income taxes,
 minority interests and equity in
 investee companies 2,025 (211,591) 48,219 (219,974)
 Income tax (provision)
 benefit (500) 95,882 (12,600) 98,912
 Minority interests (928) (1,049) (2,830) (3,170)
 Equity in investee
 companies 692 98 4,376 (4,716)
 Income (loss) from continuing
 operations 1,289 (116,660) 37,165 (128,948)
 Income (loss) from
 discontinued insurance
 brokerage operations -- (9,942) 6,753 (9,095)
 Income (loss) before
 extraordinary items 1,289 (126,602) 43,918 (138,043)
 Extraordinary item - early
 extinguishment of debt -- -- -- 1,715
 Extraordinary item of
 investee companies -- 293 -- 670
 Net income (loss) 1,289 (126,309) 43,918 (135,658)
 Per-share information:
 Income (loss) from
 continuing operations .02 (1.58) .50 (1.74)
 Income (loss) from
 discontinued insurance
 brokerage operations -- (.14) .09 (.12)
 Income (loss) before
 extraordinary items .02 (1.72) .59 (1.86)
 Extraordinary items -- .01 -- .03
 Net income (loss) .02 (1.71) .59 (1.83)
 Average number of common and
 common equivalent shares
 outstanding 75,789 73,771 75,052 74,308
 -0- 11/4/92
 /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: FIN SU: ERN


KD-OS -- NY044 -- 2540 11/04/92 13:41 EST
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Date:Nov 4, 1992
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