EARNINGS

EARNINGS

USF&G SEES PROFIT

DECLINE FOR YEARBALTIMORE - In its last earnings statement as an independent company, USF&G Corp. said its 1997 net income dropped to $194 million from $261 million in 1996.

The company said last month it was being acquired by St. Paul Insurance Cos. to form the eight largest U.S. property/casualty insurer.

Total revenue was down to $3.4 billion last year from $3.5 billion in 1996. Earned premiums remained the same at $2.7 billion but investment gains were down to $15 million from $44 million.

Fourth-quarter net income dropped nearly in half to $54 million from $102 million in the 1996 period. Total revenue decreased to $859 million from $902 million for 1996's last three months. Earned premiums decreased to $666 million from $703 million while net gains fell to $11 million from $28 million.

The combined ratio worsened for the quarter to 106.1 percent from 104.6 percent in 1996. For the year, the combined ratio improved to 103.3 percent from 105.6 percent. A combined ratio measures the percentage of premium spent on claims and expenses.

CHARTWELL RE SEES GROWTH

THROUGH ACQUISITION

STAMFORD, Conn. - Chartwell Re Corp., an insurance and reinsurance holding company, said its year-end net income grew to $27.3 million last year from $21 million in 1996.

And total revenue spiked for the year to $34 million from $9.7 million in 1996. The 1997 results were helped by the inclusion of results from Archer Group Holdings, whose unit manages several Lloyd's of London syndicates. Chartwell Re bought Archer in November 1996.

For the fourth quarter, net income rose to $7.1 million from $6.3 million in 1996. Revenue nearly doubled to $8.6 million in the 1997 quarter from $4.7 million in 1996.

The combined ratio improved to 102.4 percent for the fourth quarter from 104.0 percent reported for the same period in 1996. For the year, the combined ratio decreased to 101.9 percent from 104.2 percent in 1996.

MORTGAGE INSURER SEES

NET INCOME INCREASE

ARMONK, N.Y. - Investment guarantor MBIA Inc. reported an increase in fourth-quarter net income to $97.7 million from $81.5 million for the fourth quarter of 1996.

Net income for the year was also up, to $374.2 million in 1997 from $322.2 million the previous year.

Both figures were helped by increases in earned premiums and realized capital gains. Fourth-quarter earned premiums rose to $78.6 million from $65 million; capital gains rose to $4.5 million from $2 million. Year-end earned premiums grew to $297.4 million from $251.7 million in 1996. Realized gains were up to $17.5 million in 1997 from $11.7 million the previous year.

Fourth quarter revenue rose to $180.4 million from $140.3 million in 1996. For the year, revenue was up to $654 million from $545.5 million in 1996.

The combined ratio rose to 21.4 percent from 19.8 percent for the quarter. It improved to 18.2 percent from 19.3 percent for the year.