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VICTORIA FINANCIAL CORPORATION ANNOUNCES SEVENTH CONSECUTIVE RECORD QUARTER

 Direct Written Premiums (Sales) Up 16 Pct; Net Operating Income
 Increases 68 Pct; Total Assets Reach $84 MM; Net Income Up 46 Pct
 CLEVELAND, Nov. 3 /PRNewswire/ -- Victoria Financial Corporation (NASDAQ: VICF), a Cleveland-based specialty insurance company, today announced record third quarter and nine-month results. All comparisons are to the same 1992 periods. All 1992 share and per share amounts have been adjusted to reflect a 1 for 2.5 stock split completed in July 1993.
 For the quarter ended Sept. 30, 1993, Net Operating Income, which excludes realized gains (losses) on the sale of investments, was $468,000 an increase of 68 percent over Net Operating Income for the third quarter 1992. Net Income of $600,000 increased by 46 percent and the Combined Operating Ratio increased slightly to 98.9 from 98.8. Direct Written Premiums increased 16 percent to $13,228,000. Net Operating Income per share on a fully diluted basis increased 21 percent to $.17 from $.14 while Net Income per share on a fully diluted basis increased 5 percent from $.21 to $.20.
 For the nine months ended Sept. 30, 1993, Net Operating Income of $1,319,000 exceeded that of the same period in 1992 by 91 percent. Net Income of $1,642,000 increased 65 percent and the Combined Operating Ratio improved to 98.7 from 99.2 in 1992. Direct Written Premiums increased 18 percent to $43,216,000. Net Operating Income per share on a fully diluted basis increased 23 percent to $.48 from $.39 while Net Income per share on a fully diluted basis increased 20 percent to $.60 from $.50.
 Kenneth R. Rosen, president and chief executive officer, stated, "The environment in which we operate remains very competitive. As I previously stated, other companies have reduced rates with the stated purpose of increasing market share. While it is getting more difficult to predict short-term success in this environment, we remain disciplined, focusing on our goal of providing superior long term returns to our stockholders. During the fourth quarter, we are entering the State of Wisconsin and have already begun our analysis of two or three additional states for entry in 1994, consistent with our ongoing geographic expansion program.
 "During the third quarter, we also increased the amount available under our bank facility from $8,500,000 to $12,500,000. The availability of these additional funds, along with the recently completed public stock offering which raised net proceeds to the company of $11.3 million, will support additional growth of the company's operations. In addition, these financing activities allowed us to terminate our 10 percent Quota Share Reinsurance Agreement during the quarter."
 Victoria Financial Corporation, headquartered in Cleveland, is a specialty lines insurance holding company concentrating in nonstandard automobile insurance. The company currently operates in Alabama, Arizona, Florida, Illinois, Indiana, Iowa, Ohio, Tennessee and Virginia and is licensed to write business in an additional 18 states and the District of Columbia. The company's common stock currently trades on the NASDAQ National Market System under the symbol VICF.
 VICTORIA FINANCIAL CORPORATION
 CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
 (Dollars in Thousands)
 STATEMENTS OF OPERATIONS For the Nine Months Ended
 Sept. 30, Sept. 30, Percent
 1993 1992 Change
 Direct Written Premiums (sales) $43,216 $36,584 18
 Net Written Premiums 38,900 32,517 20
 Net Earned Premiums 34,963 27,920 25
 Net Investment Income 1,345 1,191 13
 Other Revenues 1,343 871 54
 Total Revenues 37,651 29,982 26
 Loss and Loss Adjustment
 Expenses 24,573 19,005 29
 Underwriting and Other
 Expenses 11,331 10,075 12
 Total Expenses 35,904 29,080 23
 Pre-tax Net Operating Income 1,747 902 94
 Income Tax Expense 428 213 101
 Net Operating Income 1,319 689 91
 Realized Gain on Sale
 of Investments, Net of Tax 323 304 6
 Net Income $ 1,642 $ 993 65
 STATEMENTS OF OPERATIONS For the Three Months Ended
 Sept. 30, Sept. 30, Percent
 1993 1992 Change
 Direct Written Premiums (sales) $13,228 $11,425 16
 Net Written Premiums 12,682 8,020 58
 Net Earned Premiums 13,251 9,484 40
 Net Investment Income 489 395 24
 Other Revenues 497 332 50
 Total Revenues 14,237 10,211 39
 Loss and Loss Adjustment
 Expenses 9,268 6,624 40
 Underwriting and Other
 Expenses 4,345 3,255 33
 Total Expenses 13,613 9,879 38
 Pre-tax Net Operating Income 624 332 88
 Income Tax Expense 156 54 189
 Net Operating Income 468 278 68
 Realized Gain on Sale
 of Investments, Net of Tax 132 134 (1)
 Net Income $ 600 $ 412 46
 For the Nine Months Ended
 Sept. 30,
 1993 1992
 Net Operating Income Per Common Share:
 Primary $.48 $.50
 Fully Diluted $.48 $.39
 Net Income Per Common Share:
 Primary $.60 $.73
 Fully Diluted $.60 $.50
 Combined Operating Ratio (GAAP Basis):
 Loss and Loss Adjustment Expense Ratio 70.3 68.0
 Underwriting and Other Expense Ratio 28.4 31.2
 Combined Operating Ratio 98.7 99.2
 For the Three Months Ended
 Sept. 30,
 1993 1992
 Net Operating Income Per Common Share:
 Primary $.17 $.20
 Fully Diluted $.17 $.14
 Net Income Per Common Share:
 Primary $.21 $.29
 Fully Diluted $.21 $.20
 Combined Operating Ratio (GAAP Basis):
 Loss and Loss Adjustment Expense Ratio 69.9 69.8
 Underwriting and Other Expense Ratio 28.9 29.0
 Combined Operating Ratio 98.9 98.8
 BALANCE SHEETS Sept. 30, Dec. 31, Percent
 1993 1992 Change
 Cash and Investments $56,632 $42,725 33
 Deferred Policy Acquisition Costs 7,038 5,137 37
 Premium Balances Receivable 17,054 13,604 25
 Reinsurance Recoverable 463 5,111 (91)
 Other Assets 2,851 1,958 46
 Total Assets $84,038 $68,535 23
 Loss and Loss Adjustment Expenses
 Payable $20,572 $16,782 23
 Unearned Premiums 25,362 20,922 21
 Funds Held Under Reinsurance Treaties 374 4,151 (91)
 Other Liabilities 7,585 6,357 19
 Notes and Debentures Payable 6,000 8,500 (29)
 Stockholders' Equity 24,145 11,823 104
 Total Liabilities &
 Stockholders' Equity $84,038 $68,535 23
 Common Shares Outstanding 3,578,564 2,559,761 40
 -0- 11/3/93
 /CONTACT: Tab A. Keplinger, chief financial officer, of Victoria Financial Corporation, 216-461-3461/
 (VICF)


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

AR-KL -- CL021 -- 0286 11/03/93 16:09 EST
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Date:Nov 3, 1993
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