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WALSHIRE ASSURANCE COMPANY REPORTS SECOND QUARTER EARNINGS; PREMIUMS WRITTEN INCREASE BY 54.7 PERCENT

    YORK, Pa., Aug. 12 /PRNewswire/ -- Walshire Assurance Company (NASDAQ-NMS: WALS) announced today its results for the 1993 second quarter ending June 30.
    Second quarter revenues were $6.48 million, a 30.9 percent increase from 1992 second quarter revenues.  Premiums written (which will be earned over the next 12 months) increased by $2.7 million, or 54.7 percent, in the period, with the company's auto physical damage and primary liability products accounting for 25.4 percent and 69.5 percent, respectively, of the higher sales volume.
    Total expenses for the quarter rose 38.9 percent, to $5.57 million, from the prior year period.  The increase was primarily the result of the higher level of loss reserves relating to primary liability business that has been offered by the company for the last two years.  The company's policy is to maintain reserves for this product at industry levels until company-specific data is available.
    Net income for the quarter was $678,889, or $.21 per share on a primary basis ($.20 on a fully diluted basis).  This compares with net income for the 1992 second quarter of $694,521, or $.30 per share ($.24 fully diluted).
    Following the redemption of the company's 10 percent convertible subordinated debentures in May of 1992, the total number of common shares outstanding increased by approximately 558,000.  Shares currently outstanding total 3,365,000.
    "Our performance in 1993 increasingly demonstrates the success of our plan to grow the company and build value for shareholders," said Kenneth R. Taylor, Walshire's president.  "We are exceeding our goal of increasing premiums written by 25 percent per annum.  We are also witnessing growth of our traditional physical damage product."  Mr. Taylor also noted that the over-50 percent increase in written premiums during the past six months should contribute to higher earnings if the company's historical loss ratios can be maintained over the next year.
    Six-Month Results
    Revenues for the first six months of 1993 were $12.5 million, a 26.8 percent increase over 1992 first six month revenues.  Premiums written in the first six months of 1993 increased 51.0 percent from the same period last year, a volume growth of $4.9 million.  The growth was derived from the following: 23.7 percent from auto physical damage, 74.5 percent from primary liability, and 1.8 percent from other areas of operations.
    Expenses for the first half of 1993 were $10.8 million, a 35.7 percent increase from the prior period.  Net income for the first six months was $1.3 million, or $0.43 per share, including $0.02 per share resulting from an accounting change ($0.41 on a fully diluted basis, including a $0.02 per share resulting from an accounting change).  1992 first six month net income was $1.4 million, or $0.61 per share ($0.49 fully diluted).
    Walshire Assurance Company is a regional insurance holding company. Through its subsidiaries, Walshire conducts business in three insurance- related areas: property and casualty insurance; insurance premium finance; and claims adjustment services.  The company's primary focus has been to offer services to the transportation industry and the company is now licensed to write business in 30 states.  Walshire maintains a rating of "A" from Best's.
                    WALSHIRE ASSURANCE COMPANY
             Second Quarter 1993 Financial Highlights
                            (Unaudited)
    Three Months Ended June 30,                1993         1992
    Revenues                             $6,480,750   $4,950,404
    Expenses                              5,572,761    4,012,715
    Income before income taxes              907,989      937,689
    Provision for income taxes              229,100      243,168
    Net income                              678,889      694,521
    Net income per common share and
     common equivalent share:
     Primary:
     Net income                               $ .21       $ .30
    Weighted average shares outstanding   3,263,241   2,307,788
     Fully diluted:
     Net income                               $ .20       $ .24
    Weighted average shares outstanding   3,466,395   3,633,173
    Six Month 1993 Financial Highlights
    Six Months Ended June 30,                  1993         1992
    Revenues                            $12,518,144   $9,876,115
    Expenses                             10,830,587    7,981,560
    Income before income taxes and
     cumulative effect of the change
     in accounting for income taxes       1,687,557    1,894,555
    Provision for income taxes              424,000      491,591
    Income before cumulative effect of
     the change in accounting for
     income taxes                         1,263,557    1,402,964
    Cumulative effect of the change in
     accounting for income taxes             61,000           --
    Net income                           $1,324,557   $1,402,964
    Net income per common share and
     common equivalent share:
     Primary:
     Income before cumulative effect of
      the change in accounting for
      income taxes                            $ .41        $ .61
     Cumulative effect of the change in
     accounting for income taxes                .02           --
    Net income                                $ .43        $ .61
    Weighted average shares outstanding   3,078,814    2,294,293
    Fully diluted:
     Income before cumulative effect of
      the change in accounting for
      income taxes                            $ .39        $ .49
     Cumulative effect of the change in
      accounting for income taxes               .02           --
    Net income                                $ .41        $ .49
    Weighted average shares outstanding   3,479,638    3,619,632
    -0-             08/12/93
    CONTACT:  Gary J. Orndorff, vice president - treasurer, or Steven Kennedy of Dewe Rogerson Inc., 212-688-6840, for Walshire Assurance Company
    (WALS) CO:  WALSHIRE ASSURANCE COMPANY IN:  INS SU:  ERN ST:  PA


-- NY098 -- X460 08/12/93
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Date:Aug 12, 1993
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