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USLICO REPORTS FIRST QUARTER EARNINGS, DECLARES CASH DIVIDEND

 USLICO REPORTS FIRST QUARTER EARNINGS, DECLARES CASH DIVIDEND
 ARLINGTON, Va., April 28 /PRNewswire/ -- USLICO Corporation (NYSE: USC) today announced first quarter 1992 earnings of $2.7 million, or 25 per share, compared to first quarter 1991 net income of $6.3 million, or 58 cents on a per share basis. The lower earnings were caused primarily by continued higher than expected mortality and lower yields on investments. As shown in the table below, life earnings decreased by $3.2 million.
 USLICO CORPORATION
 (In thousands)
 Three Months Ended March 31
 1992 1991 +(-)
 Income from Continuing
 Operations
 Life insurance $ 3,505 $ 9,026 $(5,521)
 Interest and other (1,165) (1,532) 367
 Federal income tax (424) (2,354) 1,930
 Operating Income 1,916 5,140 (3,224)
 Realized gains (after tax) 820 308 512
 Net Income from Continuing
 Operations 2,736 5,448 (2,712)
 Discontinued P&C Operations --- 804 (804)
 Net Income $2,736 $6,252 $(3,516)
 Sales results declined for the quarter, as shown in the following table:
 Annualized Premium Sales
 (in thousands)
 Three Months Ended March 31
 1992 1991
 Individual Life $ 3,882 $ 5,468
 Payroll Deduction 1,933 1,998
 Group Life 370 904
 Annuities 35,895 74,710
 Total $42,080 $83,080
 Individual life sales declined 29 percent. Most of the reduction is attributed to the disruption caused by the relocation of underwriting and issue functions from the Central Service Center in Bismarck, N.D., and their consolidation into our home office.
 Payroll deduction sales are flat as compared to last year owing mainly to the continued sluggishness in the economy primarily affecting the industrial sector which comprises most of USLICO's base.
 The reduction in annuity sales for 1992 reflects the company's plan to stabilize annuity growth and is on target for the 1992 goal.
 Asset Quality. USLICO also reported that its life insurance subsidiaries continued to maintain exceptionally strong asset quality during 1992. As of March 31, bonds rated below investment grade represented only 2.9 percent of the bond portfolio, and all of those bonds were current as to interest and principal payments. USLICO's consolidated 60-day mortgage delinquency rate was only 1.45 percent of the mortgage loan portfolio on a dollar percentage basis compared to the most recently published life insurance industry average of 5.71 percent.
 Quarterly Dividend. USLICO also announced that its board of directors voted a quarterly dividend of 25 cents per share of common stock. The dividend will be paid on May 29, to shareholders of record on May 19. USLICO Corporation continues the record of United Services Life Insurance Company, its predecessor company, in paying dividends for 41 consecutive years.
 New President Elected. The board of directors also announced today that David H. Roe has been elected president and chief operating officer of USLICO Corporation. Roe will assume responsibility for the operations of United Services Life Insurance Company and its subsidiaries, United Olympic Life Insurance Company and Bankers Security Life Insurance Society.
 Prior to joining USL in October 1991, Roe was responsible for corporate controller and finance functions and for organizational, strategic and marketing planning for USAA. He served as president of the USAA Capital Corporation which owns all their non-insurance subsidiaries, and earlier as president of the property and casualty division and of the financial service division.
 A Rhodes Scholar and former White House Fellow, Roe is a 1962 graduate of the Air Force Academy where he was Cadet Wing Commander. He earned both M.S. and Ph.D degrees in physiology at the University of Illinois at Urbana, and retired from the United States Air Force as a brigadier general in 1986. He is a Registered Representative and General Securities Principal of the NASD, is a CPCU and has completed seven of 10 CLU examinations.
 SUMMARIZED FINANCIAL INFORMATION
 (In millions, except per share data)
 First Quarter
 1992 1991
 Revenue $97.1 $92.3
 Net Income 2.7 6.3
 Net Income from
 Continuing Operations 2.7 5.4
 Net Capital Gains (after taxes) 0.8 0.3
 Earnings Per Share:
 Primary
 Net Income 0.25 0.58
 Net Income from Continuing
 Operations 0.25 0.51
 Net Income Excluding
 Capital Gains 0.18 0.55
 Fully Diluted
 Net Income 0.25 0.53
 Net Income from Continuing
 Operations 0.25 0.48
 Net Income Excluding
 Capital Gains .18 .51
 Weighted Average Shares Outstanding
 1992 10,755,747
 1991 10,776,748
 USLICO Corporation is an insurance holding company headquartered in Arlington. Its three life insurance subsidiaries focus on selected market niches, including individual life, annuity and payroll deduction sales.
 -0- 4/28/92
 /CONTACT: Charles V. Giuffra, chairman and chief executive officer, USLICO, 703-875-3414/
 (USC) CO: USLICO Corporation ST: Virginia IN: INS SU: ERN DIV PER


TW -- DC001 -- 3561 04/28/92 08:45 EDT
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Date:Apr 28, 1992
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