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VICTORIA FINANCIAL CORPORATION ANNOUNCES RECORD FOURTH QUARTER AND ANNUAL RESULTS

Annual Sales Exceed $49 Million - Up 70 Percent Fourth Quarter After-tax Net Operating Income - Up 826 Percent Annual After-tax Net Operating Income Reaches $1,003,000 - Up 118 Percent Over Best Year Annual Net Income Increases 159 Percent Total Assets Reach $65.7 Million - Up 55 Percent
 CLEVELAND, March 1 /PRNewswire/ -- Victoria Financial Corporation (NASDAQ: VICF), a Cleveland based specialty insurance company, today announced record fourth quarter and annual results for 1992. All comparisons are to the same 1991 period. All per share amounts are fully diluted.
 For the year ended Dec. 31, 1992, after-tax net operating income, was $1,003,000 or $.21 per share compared to $540,000 or $.15 per share in 1991. Net income increased to $1,331,000 or $.26 per share in 1992, compared to $513,000 or $.15 per share in 1991. Direct written premiums (sales) increased 70 percent in 1992 to $49,069,000. Net investment income increased $318,000 during the period to $1,672,000. The combined operating ratio improved from 99.8 to 99.1.
 For the quarter ended Dec. 31, 1992, after-tax net operating income increased 258 percent to $315,000 or $.06 per share compared to after- tax net operating income of $88,000 or $.03 per share in 1991. Net income increased to $338,000 or $.07 per share in 1992 compared to $91,000 or $.03 per share in 1991. Direct written premiums (sales) increased 41 percent to $12,485,000. Net investment income increased $78,000 during the period to $482,000. The combined operating ratio improved from 101.5 to 98.9.
 Operating results were positively impacted by significant growth in sales volume and continued improvement in the combined operating ratio. The sales growth is primarily a result of additional penetration into existing markets as well as the introduction of the company's product into the states of Florida and Alabama during 1992. The improvement in the combined operating ratio reflects the company's continued emphasis on reducing operating expenses as a percentage of revenues.
 On Dec. 31, 1992 the company completed the conversion of $6,174,000 outstanding 10 percent convertible subordinated notes due 2001 into 3,087,000 shares of Victoria Financial Corporation common stock. All holders elected to convert all their notes. This reduces the company's 1993 pre-tax debt service requirement by $617,000.
 The company anticipates 1993 to be another excellent year in growth and earnings. Severe weather conditions in its major markets in February may slow progress in the first quarter.
 Victoria Financial Corporation, headquartered in Cleveland, is a specialty lines insurance holding company concentrating in nonstandard automobile insurance. The company currently operates in Arizona, Alabama, Illinois, Indiana, Iowa, Florida, Ohio, Tennessee and Virginia and is licensed to write business in an additional 16 states and the District of Columbia. The company's common stock trades on the NASDAQ over-the-counter market with the symbol VICF.
 VICTORIA FINANCIAL CORPORATION
 CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
 (Dollars in Thousands)
 STATEMENTS OF OPERATIONS For the Years Ended
 Dec. 31, Dec. 31,
 1992 1991 Pct. Change
 Direct Written Premiums (sales) $49,069 $28,942 70
 Net Written Premiums 43,443 28,285 54
 Net Earned Premiums 38,003 23,767 60
 Net Investment Income 1,672 1,354 23
 Other Revenues 1,240 613 102
 Total Revenues 40,915 25,734 59
 Loss and Loss Adjustment
 Expenses 26,249 15,030 75
 Underwriting and Other
 Expenses 13,357 9,903 35
 Total Expenses 39,606 24,933 59
 Pre-tax Net Operating Income 1,309 801 63
 Income Tax Expense 306 341 (10)
 Net Operating Income before
 Extraordinary Item 1,003 460 118
 Extraordinary Item - Tax Benefit
 from Utilization of an Operating
 Loss Carryforward -- 80 --
 Realized Gain (Loss) on Sale
 of Investments, Net of Tax 328 (27) --
 Net Income $ 1,331 $ 513 159
 STATEMENTS OF OPERATIONS For the Three Months Ended
 Dec. 31, Dec. 31,
 1992 1991 Pct. Change
 Direct Written Premiums (sales) $12,485 $ 8,826 41
 Net Written Premiums 10,096 8,580 18
 Net Earned Premiums 10,083 7,019 44
 Net Investment Income 482 404 19
 Other Revenues 369 185 99
 Total Revenues 10,934 7,608 44
 Loss and Loss Adjustment
 Expenses 7,244 4,677 55
 Underwriting and Other
 Expenses 3,283 2,776 18
 Total Expenses 10,527 7,452 41
 Pre-tax Net Operating Income 407 156 161
 Income Tax Expense 92 122 (25)
 Net Operating Income before
 Extraordinary Item 315 34 826
 Extraordinary Item - Tax Benefit
 from Utilization of an Operating
 Loss Carryforward -- 54 --
 Realized Gain (Loss) on Sale
 of Investments, Net of Tax 23 3 667
 Net Income $ 338 $ 91 271
 VICTORIA FINANCIAL CORPORATION
 CONSOLIDATED FINANCIAL HIGHLIGHTS
 FOR THE YEARS ENDED DECEMBER 31,
 1992 1991
 Net Operating Income Per Common Share:
 Primary
 Before Extraordinary Item $.29 $.16
 Extraordinary Item -- $.01
 Net Operating Income $.29 $.17
 Fully Diluted:
 Before Extraordinary Item $.21 $.14
 Extraordinary Item -- $.01
 Net Operating Income $.21 $.15
 Net Income Per Common Share:
 Primary:
 Before Extraordinary Item $.38 $.15
 Extraordinary Item -- $.01
 Net Income $.38 $.16
 Fully Diluted:
 Before Extraordinary Item $.26 $.14
 Extraordinary Item -- $.01
 Net Income $.26 $.15
 Combined Operating Ratio (GAAP Basis):
 Loss and Loss Adjustment Expense Ratio 69.1 63.2
 Underwriting and Other Expense Ratio 30.0 36.6
 Combined Operating Ratio 99.1 99.8
 VICTORIA FINANCIAL CORPORATION
 CONSOLIDATED FINANCIAL HIGHLIGHTS
 FOR THE THREE MONTHS ENDED DECEMBER 31,
 1992 1991
 Net Operating Income Per Common Share:
 Primary
 Before Extraordinary Item $.09 $.03
 Extraordinary Item -- --
 Net Operating Income $.09 $.03
 Fully Diluted:
 Before Extraordinary Item $.06 $.03
 Extraordinary Item -- --
 Net Operating Income $.06 $.03
 Net Income Per Common Share:
 Primary:
 Before Extraordinary Item $.10 $.03
 Extraordinary Item -- --
 Net Income $.10 $.03
 Fully Diluted:
 Before Extraordinary Item $.07 $.03
 Extraordinary Item -- --
 Net Income $.07 $.03
 Combined Operating Ratio (GAAP Basis):
 Loss and Loss Adjustment Expense Ratio 71.8 66.0
 Underwriting and Other Expense Ratio 27.1 34.9
 Combined Operating Ratio 98.9 101.5
 VICTORIA FINANCIAL CORPORATION
 CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
 (Dollars in Thousands)
 BALANCE SHEETS Dec. 31, Dec. 31, Pct.
 1992 1991 Change
 Cash and Investments $42,725 $28,831 48
 Deferred Policy Acquisition Costs 5,137 4,103 25
 Premium Balances Receivable 13,604 7,785 75
 Other Assets 4,280 1,812 136
 Total Assets $65,746 $42,531 55
 Loss and Loss Adjustment Expenses
 Payable $16,083 $10,195 58
 Unearned Premiums 18,832 13,392 41
 Other Liabilities 10,509 3,334 215
 Notes and Debentures Payable 8,500 11,174 (24)
 Shareholders' Equity 11,822 4,436 167
 Total Liabilities &
 Shareholders' Equity $65,746 $42,531 55
 -0- 3/1/93
 /CONTACT: Tab A. Keplinger, assistant vice president of Victoria Financial Corporation, 216-461-3461/
 (VICF)


CO: Victoria Financial Corporation ST: Ohio IN: FIN INS SU: ERN

BM -- CL009 -- 1339 03/01/93 11:03 EST
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Date:Mar 1, 1993
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