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US FACILITIES REPORTS SHARPLY HIGHER THIRD QUARTER RESULTS

 COSTA MESA, Calif., Nov. 11 /PRNewswire/ -- US Facilities Corp. (NASDAQ: USRE) today reported net income of $1.5 million, or $.26 per share, for its third quarter ended Sept. 30, 1993, up sharply from the $302,000, or $.05 per share, reported for the corresponding year-earlier period. Total revenues for the third quarter rose to $29.0 million, a 32 percent increase from $21.9 million a year ago.
 For the nine months ended Sept. 30, 1993, US Facilities' net income increased 52 percent to $5.2 million, or $.88 per share, from $3.4 million, or $.58 per share, in the year-earlier period. Total revenues for the first nine months of 1993 reached $82.2 million, up 35 percent from $60.9 million for the 1992 period. Net income for the third quarter and nine-month period of 1992 was reduced by $1.3 million, or $.22 per share, due to the effect of claims arising from Hurricane Andrew.
 "Our third quarter performance was fueled by a 40 percent increase in earned premiums, principally reflecting growth in medical stop-loss reinsurance," said George Kadonada, chairman and chief executive officer.
 "Additionally, we benefited from price increases and growth in our property reinsurance business, although we continue to maintain a conservative approach in this area."
 Commission and fee income for the quarter rose 22 percent from a year earlier, reflecting continued strong demand for the company's medical stop-loss coverage.
 US Facilities Corp. is a specialty insurer principally engaged in the marketing, underwriting and reinsuring of medical stop-loss coverage through its subsidiaries, US Benefits Inc. and USF RE INSURANCE CO. USF RE also reinsures property and casualty business through reinsurance intermediaries nationwide.
 US FACILITIES CORP.
 Condensed Consolidated Income Statements
 (000 omitted except for per share data)
 Quarter Ended Nine Months Ended
 Sept. 30, Sept. 30,
 1993 1992 1993 1992
 Revenues:
 Premiums earned $21,841 $15,646 $60,961 $42,443
 Commissions and fees 5,577 4,558 16,123 13,692
 Net investment income 1,443 1,446 4,360 4,073
 Realized investment
 gains 153 260 739 667
 Total revenues 29,014 21,910 82,183 60,875
 Operating expenses:
 Losses and loss
 adjustment expenses
 incurred 14,975 12,578 41,880 30,583
 Other expenses 12,078 8,866 33,540 25,464
 Interest expense 3 35 54 152
 Total operating
 expenses 27,056 21,479 75,474 56,199
 Income before
 income taxes 1,958 431 6,709 4,676
 Income tax expense 427 129 1,484 1,244
 Net income $1,531 302 5,225 3,432
 Net income
 per common and common
 equivalent share $.26 $.05 $.88 $.58
 Average number of
 common and common
 equivalent shares 5,956 5,909 5,922 5,929
 -0- 11/11/93
 /CONTACT: George Kadonada, chairman and CEO, or Rosemary Mulligan, of US Facilities, 714-549-1600/
 (USRE)


CO: US Facilities Corp. ST: California IN: INS SU: ERN

JL-LM -- LA013 -- 3166 11/11/93 11:00 EST
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Publication:PR Newswire
Date:Nov 11, 1993
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