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ROYAL INSURANCE ANNOUNCES THREE MONTHS 1993 RESULTS

 CHARLOTTE, N.C., May 12 /PRNewswire/ -- Royal Insurance reported a pre-tax statutory loss (including life and non-insurance operations) of $11.3 million for the first three months of 1993, compared to a pre-tax gain of $54.4 million for the same period in 1992. After federal income taxes, the net loss was $7.1 million, compared to a $37.9 million net gain for the first quarter of 1992.
 Written premiums increased 12 percent to $427 million. The underwriting loss rose to $104.5 million from 1992's first quarter underwriting loss of $73.8 million, and the combined ratio before dividends was 123.4, compared with the prior year's first quarter ratio of 119.1. Pre-tax investment income, excluding capital gains and losses, decreased to $74.7 million.
 "The high level of catastrophe losses that continued throughout the first three months of 1993 primarily accounted for our disappointing first quarter results," said William E. Buckley, Royal USA's chairman and chief executive officer. "Had these catastrophe losses been more in line with other years, our combined ratio would have been substantially better than in the first quarter of 1992. Our 12 percent written premium growth for the period exceeded expectations and we continued to focus our strategies on continued productivity improvement, expense management and obtaining adequate prices for our products in a very competitive marketplace," he said.
 At the same time in London, England, the parent company, Royal Insurance Holdings plc, announced its worldwide results for the first three months of 1993. A pre-tax profit of $3 million compared to an $85 million loss for the same period in 1992. After taxes, the net profit totaled $10 million versus a $96 million loss for the first quarter of 1992. Investment income declined seven percent to $189 million, while the underwriting loss of $194 million compared to 1992's first quarter loss of $296 million. Total written premiums decreased to $1.34 billion.
 Royal Insurance Holdings plc also announced a proposed rights issue of new ordinary share which is expected to raise about $600 million. The proceeds of the rights issue will provide the Group with a capital base which the board considers necessary to develop business in those markets and segments in which Royal already has a strong presence or where there are opportunities to write profitable new business. All of the Groups' subsidiaries will benefit from a stronger capital base, including Royal USA, which will continue to focus its writings in selected areas and take advantage of any firming in market conditions.
 -0- 5/12/93
 /CONTACT: Guy Staffa of Royal Insurance, 704-522-2053/


CO: Royal Insurance; Royal Insurance Holdings plc ST: North Carolina IN: INS SU: ERN

CM -- CH002 -- 7379 05/12/93 08:39 EDT
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Publication:PR Newswire
Date:May 12, 1993
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