INSURANCE EARNINGS

INSURANCE EARNINGS

AMBASE ATTRIBUTES LOSS

TO JUNK BOND INVESTMENTSAmBase Corp. reported a first quarter loss of $42 million, or $1.24 a share, down from first-quarter net income of $26 million, or 75 cents a share, a year earlier. Revenue for the first quarter fell to $777 million

from $848 million a year earlier. The company said the loss was due to a $42 million loss from junk bond investments by its insurance subsidiaries.

The company also said Monday that it was suspending its quarterly common stock dividend of five cents a share, but that it expected to pay a special dividend to its stockholders upon the completion of the sale of its New York- based Home Insurance Co. subsidiary.

Ambase Corp., an insurance, banking, and investment services organization, announced in February that it planned to sell the Home Insurance and two other insurance subsidiaries, U.S. International Re, New York, and Commonwealth Insurance Co. of Vancouver, British Columbia.

AmBase said its dividend suspension would not affect Home Insurance Co.'s $2.95 per share, "Series A," cumulative preferred stock.

AmBase also said it expected to sign a new bank credit agreement this month to repay all of its existing bank debt and provide working capital until the sale of Home Insurance.

The new bank facility will be fully repaid when the sale is closed, AmBase said.

SEDGWICK'S EARNINGS

FLAT IN FIRST QUARTER

LONDON - Sedgwick Group PLC, the largest independent U.K.insurance broker, reported almost no change in first quarter earnings.

Sedgwick's after-tax profit of 27.4million ($45.2 million) compared with 27.3 million a yearearlier.

Pre-tax profit of 42.5 million in the first quarter wasup just slightly

from 41.8 million reported for the firstthree months of 1989. Revenue was 5 percent higher at 195.9million but expenses increased by 8 percent to 152.1 million,the company said. The results were below market forecasts,with some analysts looking for a rise in pre-tax profit ofaround 10 percent.

Commenting on the first quarter results, Sedgwick chairmanDavid Rowland said market conditions in North Americaremained unchanged, with premium rates in some classescontinuing to weaken.

"Trends in rates throughout the world continue to varyconsiderably and there are as yet no clear signs of anyupturn," Mr. Rowland added.

Encouraging revenue growth was noted in Britain andcontinental Europe for most classes of retail insurancebusiness, Sedgwick reported, particularly in the financialservices consultancy sector.

FRONTIER GROUP POSTS

RISE IN NET INCOME

Frontier Insurance Group Inc.'s net income for the first quarter rose to $2.6 million, or 65 cents a share, from $1.9 million, or 47 cents a share, a year earlier.

Revenue for the first quarter rose 47.8 percent to $20.5 million from $1.9 million a year earlier.

As of February, 1990, Frontier has been admitted to write property and casualty business in Oklahoma, Michigan, South Florida, North Carolina, Massachusetts, West Virginia, Wyoming Illinois an Tennessee.

FLORIDA EMPLOYERS' NET

FELL IN FIRST QUARTER

The Florida Employers Insurance Co.'s net income for the first quarter fell to $815,970 or 36 cents a share, from $990,786, or 44 cents a share, a year earlier.

Florida Employers' first quarter revenues fell to $8,681,542, or $3.85 cents a share, from $7,313,031, or $3.24 cents a share, a year earlier.

However, in the first quarter, the company's U.S. operations generated

revenues of $330,087, or 15 cents a share, up from $221,056, or 10 cents a share.

The insurance company's Cayman Islands-based reinsurance operations generated revenues of $485,883, or 21 cents a share, down from $776,030, or 34 cents a share a year earlier.