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VALLEY EARNINGS

Republic American Profit Falls 9% in 4th Quarter

February 23, 1988

Republic American said its earnings fell 9% to $5.8 million, or 31 cents a share, in the fourth quarter ended Dec. 31.

The Encino workers' compensation insurance holding company attributed the decline to increases in funds that it set aside for vocational rehabilitation claims. The company also said it had higher interest expenses because money was borrowed to finance a stock buyback.

Republic American's net premiums earned, which are similar to revenue, increased 24% to $61.7 million in the quarter.

For the year, Republic American's earnings fell 39% to $27.1 million, or $1.34 a share. A year earlier, the company earned $44.2 million, or $2.07 a share, although that figure includes $22.6 million in one-time gains from the sale of securities. Premiums earned rose 24% to $237.9 million.

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