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RELIANCE REPORTS THIRD QUARTER RESULTS

 NEW YORK, Nov. 3 /PRNewswire/ -- Reliance Group Holdings, Inc. (NYSE: REL) today reported income from continuing operations of $30.5 million, or $.34 per share, for the third quarter of 1993, compared with a loss from continuing operations of $28.7 million, or $.38 per share, in the third quarter of 1992.
 The improvement reflects better operating results of the company's insurance businesses, as well as a significantly higher level of capital gains, largely from the sale of equity investments.
 Net income for the third quarter of 1993 was $30.5 million, or $.34 per share, compared with net income of $1.3 million, or $.02 per share, in the 1992 third quarter, which included income from discontinued life insurance operations of $30.0 million, or $.40 per share. Reliance sold its life insurance operations in July 1993 for approximately $550 million, as part of its strategy to focus its resources on property and casualty and title insurance.
 Revenues for the third quarter of 1993 totaled $744.9 million, compared with $701.2 million in the third quarter of 1992.
 For the first nine months of 1993, Reliance reported income from continuing operations of $72.6 million, or $.81 per share, versus a loss from continuing operations of $18.5 million, or $.25 per share, in the first nine months of 1992.
 Net income for the 1993 nine month period was $88.5 million, or $.99 per share, including a one-time benefit of $15.9 million, or $.18 per share, from a change in accounting for income taxes. Net income in the 1992 nine month period was $43.9 million, or $.59 per share, including $59.0 million, or $.79 per share, from discontinued life insurance and insurance brokerage operations; and an extraordinary gain of $3.5 million, or $.05 per share, from early retirement of debt.
 Revenues for the first nine months of 1993 totaled $2.18 billion, versus $2.03 billion in the 1992 period.
 Commenting on the company's performance, Saul P. Steinberg, chairman and chief executive officer of Reliance, said, "Underwriting results of our property and casualty insurance operations improved in the quarter due to lower catastrophe losses in 1993 compared with 1992. Title insurance profits also rose sharply in the quarter, reflecting a continued high level of residential refinancing activity."
 Reliance's property and casualty insurance operations produced a combined ratio (the ratio of claims and expenses to earned premiums) of 108.3 percent in the quarter, compared with 117.8 percent in the prior year period.
 Headquartered in New York City, Reliance Group Holdings, Inc. has major operations in property and casualty insurance and title insurance. Total 1992 revenues were $2.76 billion and assets at year end were $8.19 billion.
 RELIANCE GROUP HOLDINGS, INC. AND SUBSIDIARIES
 Consolidated Statement of Income (unaudited)
 (in thousands except per share amounts)
 Periods ended Quarter Nine Months
 Sept. 30 1993 1992 1993 1992
 Revenues:
 Premiums earned $612,768 $611,941 $1,797,201 $1,747,775
 Net investment income 58,366 53,277 182,399 159,289
 Gain on sales of
 investments 42,221 6,405 112,998 37,116
 Other 31,579 29,542 91,939 88,001
 Total 744,934 701,165 2,184,537 2,032,181
 Claims and expenses:
 Policy claims and
 settlement expenses 312,484 383,617 948,988 1,005,291
 Policy acquisition costs
 and other insurance
 expenses 320,739 296,043 933,419 857,520
 Interest 26,932 26,689 81,540 83,891
 Other oper. expenses 44,581 38,378 127,604 121,876
 Total 704,736 744,727 2,091,551 2,068,578
 Income (loss) from cont.
 opers. before income
 taxes, minority interests
 and equity in investee
 company 40,198 (43,562) 92,986 (36,397)
 Income tax (provision)
 benefit (11,700) 15,071 (27,000) 16,316
 Minority interests (920) (928) (2,842) (2,830)
 Equity in investee company 2,971 692 9,443 4,376
 Income (loss) from cont.
 operations 30,549 (28,727) 72,587 (18,535)
 Income from discont. life
 insurance operations -- 30,016 -- 52,240
 Income from discont. insurance
 brokerage operations -- -- -- 6,753
 Income bef. extraord. item and
 cumulative effect of change
 in accounting for income
 taxes 30,549 1,289 72,587 40,458
 Extraord. item-early
 extinguishment of debt -- -- -- 3,460
 Cumulative effect of change in
 accounting for inc. taxes -- -- 15,911 --
 Net income 30,549 1,289 88,498 43,918
 Per share information:
 Income (loss) from cont.
 operations $0.34 $(0.38) $0.81 $(0.25)
 Inc. from discont. opers. -- 0.40 -- 0.79
 Income bef. extraord. item and
 cumulative effect of change in
 accounting for inc. taxes 0.34 0.02 0.81 0.54
 Extraord. item-early
 extinguishment of debt -- -- -- 0.05
 Cumulative effect of change in
 accounting for income taxes -- -- 0.18 --
 Net income 0.34 0.02 0.99 0.59
 Avg. number of common and
 common equivalent shares
 outstanding 89,695 75,789 89,440 75,052
 -0- 11/3/93
 /CONTACT: Brian T. Martin, VP-communications of Reliance Group Holdings, 212-909-1247/
 (REL)


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

GK-CL -- NY067 -- 0198 11/03/93 13:41 EST
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Date:Nov 3, 1993
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