UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
__________
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported): Commission File Number
January 20, 1995 1-8233
USF&G CORPORATION
(Exact Name of Registrant as Specified in Charter)
Maryland 52-1220567
(State or Other Jurisdiction (IRS Employer Identification No.)
of Incorporation)
100 Light Street, Baltimore, Maryland 21202
(Address of Principal Executive Offices)
(410) 547-3000
(Registrant's telephone number, including area code)
USF&G CORPORATION
FORM 8-K
______________________
Item 5. Other Events
On January 20, 1995, USF&G Corporation (USF&G) issued a press release
announcing information as to fourth quarter earnings expectations. In addition,
plans to consolidate its Baltimore headquarters facilities were announced. The
press release is incorporated herein by reference as Exhibit I to this form.
EXHIBIT I
January 20, 1995
FOR IMMEDIATE RELEASE
CONTACT: Kerrie Burch-DeLuca
(410) 547-3573
USF&G OPERATING EARNINGS TO BE IN LINE WITH EXPECTATIONS;
CORPORATE FACILITIES CONSOLIDATION ANNOUNCED
USF&G Corporation said today it anticipates 1994 fourth quarter and
year-end operating earnings to be in line with analysts' expectations. Average
estimates for the fourth quarter are $.30 per common share and $.95 for the full
year. The company also announced plans to consolidate its Baltimore
headquarters facilities. The company expects to release final results by
February 1, 1995.
USF&G Chairman Norman P. Blake, Jr., said: "As a result of the
company's ongoing efforts to improve overall cost effectiveness, USF&G's net
income will include the acceleration of lease expenses related to the
consolidation of its Baltimore facilities. Accordingly, USF&G expects to record
a one-time charge of approximately $190 million in the fourth quarter. This
adjustment in effect reflects the acceleration of lease expenses for the 100
Light Street Tower that would have been incurred through the end of the lease
term in 2009. USF&G expects savings of approximately $70 million over the
remaining term of the lease due to this rationalization of Baltimore facilities
and the sublease of excess space.
"USF&G has completely repositioned its operations since 1991 and our
headquarters staff has decreased by approximately 28 percent. As a result, our
available office space now exceeds our needs. We are planning a phased
relocation of personnel currently residing at our 100 Light Street building over
the next two years. We hope to capitalize on the strong leasing demand for this
building, which is a premier harbor view location in Baltimore."
In addition, the company also said it expects to record an income tax
benefit of approximately $210 million in the fourth quarter. This benefit is
based on its most recent earnings record and the anticipation of continued
profitability in future years whereby it becomes appropriate to reduce the tax
valuation allowance previously established under FASB statement No. 109.
Following the adjustment, the balance of the deferred tax valuation allowance is
estimated to total approximately $270 million at year-end 1994.
Blake further commented: "USF&G and the Baltimore area have had a
strong partnership since our founding here 99 years ago. We would like to
continue that relationship and, accordingly, our plan is to consolidate
operations into our Mount Washington Center location. That facility currently
houses our training and development center, information services operations, F&G
Life Insurance headquarters, and numerous other departments."
USF&G Corporation, with assets of $13.8 billion is composed of
property/casualty and life insurance subsidiaries. The corporation's principal
subsidiary is United States Fidelity and Guaranty Company, its property/casualty
insurance company founded in 1896.
USF&G CORPORATION
FORM 8-K
______________________
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this Current Report on Form 8-K to be signed on its
behalf by the undersigned hereunto duly authorized.
USF&G CORPORATION
By: DAN L. HALE
Dan L. Hale
Executive Vice President,
Chief Financial Officer and
Principal Accounting Officer
January 20, 1995