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STATE MUTUAL REPORTS RECORD INCOME FOR 1991; CONTINGENCY RESERVES ALSO REACH NEW HIGH

 STATE MUTUAL REPORTS RECORD INCOME FOR 1991;
 CONTINGENCY RESERVES ALSO REACH NEW HIGH
 WORCESTER, Mass., March 17 /PRNewswire/ -- State Mutual Life Assurance Company of America in 1991 achieved the best financial results in its 148-year history, President and Chief Executive Officer John F. O'Brien announced at the company's annual meeting.
 O'Brien reported the consolidated operating results for State Mutual and SMA Life Assurance Company, a wholly owned subsidiary, at the meeting held today at the company's home office at 440 Lincoln St. State Mutual is the fourth-largest life insurance company in Massachusetts and among the 20 largest mutual life insurance company's in the country on the basis of assets.
 State Mutual's net income from operations reached a record $86 million, a 50 percent increase over 1990. The company also achieved a record level in its contingency reserves. The reserves -- considered a barometer of an insurer's financial strength -- increased by $206 million, or 60 percent, to $550 million at year end 1991.
 "During the 1980s, there was great temptation for individuals and companies to participate in the excesses of the times," O'Brien said. "The economic uncertainty of 1990 and 1991 exposed some of the weaknesses of only focusing on the short term and has underscored the importance of long-term planning for individuals and businesses. Since such policies have been and remain the essence of our mission, we are well positioned today.
 "We have continued to build the company's strong financial base through sound investment strategies, continuing growth in net income, and careful expense management. Our 1991 financial results demonstrate that our strategies have served our clients and our company well," he said.
 In addition to the record net income and strengthening of contingency reserves, O'Brien noted:
 --Premium income and deposits rose $25 million, to $1.9 billion;
 --Net investment income increased $21 million, to $630 million;
 --Total revenue was up $55 million, to $2.6 billion, the highest level ever;
 --Benefits paid to policyholders increased by $234 million, to $1.8 billion;
 --Total assets increased from $7.9 billion to a record of $8.9 billion.
 O'Brien said the company also achieved considerable operational and strategic gains.
 "Each of our three core business areas improved its competitive position and made significant contributions to net income from operations and growth in our contingency reserves. At the same time, each line invested in improved client communications and services, strategic initiatives and organizational strength."
 O'Brien said two newer areas of operations -- 440 Financial Group of Worcester, Inc. and SMA Financial Services, Inc. -- have effectively broadened the scope of services the company can provide clients, generated additional revenues, and enhanced State Mutual's ability to respond to future client needs.
 "440 Financial has played a key role in our client communications efforts, and has developed a premier offering of integrated marketing and client services for financial services companies," he said. "SMA Financial Services has advanced State Mutual's effort to deliver new investment products and services."
 -0- 3/17/92
 /CONTACT: Michael Buckley of State Mutual, 508-855-3099/ CO: State Mutual Life Assurance Company of America ST: Massachusetts IN: INS SU: ERN


EG-SH -- NE005 -- 8746 03/17/92 11:20 EST
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Publication:PR Newswire
Date:Mar 17, 1992
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