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 NEW YORK, July 28 /PRNewswire/ -- TIG Holdings, Inc. (NYSE: TIG) today reported a net loss for the second quarter ended June 30, 1993, of $135.5 million or $2.16 per share, compared with a net loss of $31.5 million or $0.50 per share in the second quarter of 1992.
 The second quarter 1993 results include a restructuring charge of $73.0 million for expenses related to previously announced staff reductions, the relocation of the company's national support center and lease termination expense resulting from the restructuring of field operations. This restructuring charge is in line with the estimated charge disclosed in the company's initial public offering prospectus. Second quarter 1993 results also include a provision totaling $65.6 million relating to the decision to exit certain unprofitable commercial business of which $38.0 million was for future losses and $27.6 million was for the write-off of intangibles.
 During the 1993 second quarter, loss reserves were strengthened by $70.2 million as compared to $84.5 million during the corresponding period in 1992. The loss reserve increase in the second quarter of 1993 was principally due to the adoption by new management of a more conservative approach to establishing loss reserves. In the quarter, $10.5 million in compensation expense was incurred related to the company's grant of 100 shares of common stock to each employee at the time of the initial public offering.
 TIG realized after-tax net investment gains of $10.8 million in the second quarter of 1993 as compared to $6.6 million in the second quarter of 1992.
 Jon Rotenstreich, chairman and chief executive officer, said, "In the three months since the company's IPO, we have made significant progress in implementing our restructuring plan. Focusing on expenses, we have reduced staff count by over 600 people and announced the relocation of our national support center to the Dallas-Fort Worth Metroplex area. In order to improve underwriting results, we have identified and are executing a plan to exit over $200 million in unprofitable commercial business."
 Net losses for the first six months of 1993 and 1992 were $180.3 million or $2.88 per share and $34.1 million or $0.55 per share, respectively. Net loss for the first half of 1992 included a charge of $15.1 million or $0.24 per share for a change in accounting for post employment benefits, and a loss from discontinued operations of $13.0 million or $0.21 per share.
 In the first half of 1993, as was disclosed in the offering prospectus, TIG entered into a Proposition 103 settlement with the California Department of Insurance. As a result, TIG accrued in this six-month period refunds to be paid to policyholders of $17.0 million which are comprised of $12.1 million in premium refunds and $4.9 million in interest expense.
 Catastrophe-related costs, net of reinsurance, were $17.8 million in the first six months of 1993 as compared with $11.3 million in the first six months of 1992. In addition to the restructuring charge of $73.0 million in the second quarter of 1993, employee separation and other costs related to TIG's initial public offering of $6.9 million were incurred in the first quarter of 1993.
 Total assets as of June 30, 1993, were $6.2 billion including investment assets of $4.4 billion, compared with total assets of $5.7 billion including investment assets of $3.4 billion as of Dec. 31, 1992. Common shareholders equity was $1.2 billion at the end of the second quarter 1993 compared with $1.1 billion at Dec. 31, 1992.
 Headquartered in New York, TIG Holdings, Inc. is a holding company for Transamerica Insurance Group. Transamerica Insurance Group and its subsidiaries are a property casualty insurance group that offers reinsurance and primary commercial and personal insurance throughout the United States. It is the 27th largest property and casualty insurer and the 10th largest property and casualty reinsurer in the United States, based on 1992 net written premiums.
 Summary Consolidated Financial Data
 (Unaudited; dollars in millions, except per share amounts)
 Periods ended Three Months Six Months
 June 30 1993 1992 1993 1992
 Income Statement Data:
 Gross premiums written $502 $520 $1,030 $1,038
 Net premiums written 384 402 763 796
 Net premiums earned 391 408 775 829
 Losses and LAE incurred 387 395 815 725
 Policy acquisition and
 other underwriting expenses 138 130 275 263
 Underwriting loss (141) (121) (328) (169)
 Net investment income 60 63 115 122
 Pretax loss (64) (49) (139) (33)
 Restructuring charge 73 -- 73 --
 Provision for exiting certain
 commercial business 66 -- 66 --
 Net loss from continuing operations
 excluding investment gains (146) (30) (228) (15)
 Investment gains, net of tax 11 7 48 9
 Discontinued opers., net of tax -- (8) -- (13)
 Accounting change, net of tax -- -- -- (15)
 Net loss (135) (31) (180) (34)
 Weighted average shares
 outstanding 62,956,774 62,938,518 62,956,774 62,938,518
 Earnings per common share (2.16) (0.50) (2.88) (0.55)
 Operating Ratios:
 Loss and LAE (pct.) 99.1 96.8 105.2 87.5
 Underwriting expense (pct.) 35.3 32.0 35.4 31.7
 Policyholder dividends (pct.) 1.8 1.1 1.6 1.2
 Combined ratio (pct.) 136.2 129.9 142.2 120.4
 Balance Sheet Data
 6/30/93 12/31/92
 Investment assets $4,369 $3,449
 Total assets 6,234 5,661
 Total reserves 4,337 4,094
 Common equity 1,167 1,087
 Book value per share $18.53 $17.27
 -0- 7/28/93
 /CONTACT: Louis Paglia of TIG Holdings, Inc., 212-446-2708, or Andrew Baer or Tracey Stearns of Kekst and Company, 212-593-2655, for TIG Holdings, Inc./

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

CK -- NY029 -- 7200 07/28/93 10:44 EDT
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Publication:PR Newswire
Date:Jul 28, 1993

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