United Companies reports earnings for first quarter, 1995.

BATON ROUGE, La.--(BUSINESS WIRE)--April 18, 1995--United Companies Financial Corporation (UCFC) today reported net income of $12.7 million (or 90 cents per share) for the three-month period ended March 31, 1995.

This represents an 116% rise over $5.9 million (or 41 cents per share) for the

On a continuing operations basis (excluding results from UCFC's discontinued title insurance subsidiary), earnings per share were 91 cents for the quarter, compared to 93 cents for the same period last year.

"These results were achieved despite the fact that -- between the first quarters of 1994 and 1995 -- we experienced a more than 200 basis point rise in the average U.S. Treasury rates at which UCFC's loans are priced for sale in the secondary market," said J. Terrell Brown, President & Chief Executive Officer.

"Nevertheless, the rise in Treasury rates was offset by a record $309.3 million in quarterly loan volume -- the first time we eclipsed the $300 million mark in quarterly loan production in our 49-year history -- as United Companies is now beginning to realize the benefits of our coast-to-coast geographic expansion and the introduction of new distribution channels in our mortgage lending operation," said Brown.

Mortgage Lending Operations:

The total of $309.3 million in first quarter loan volume represents a 57% increase over $197.3 million produced in the first quarter of 1994, and a 23% rise over $252.1 million produced in the trailing quarter.

By comparison, only two years ago, UCFC produced $301.2 million in loans for the full 12 months of 1992. This reflects management's efforts to transform United Companies from a regional lender to a nationwide provider of non-conventional financial products and services. For instance, since year-end 1992, UCFC has:

-- expanded the market reach of its retail operation, United

Companies Lending, from 116 offices in 17 mostly southeastern

states to more than 143 branch offices in 39 states;

-- initiated a wholesale lending division, Unicor Mortgage,

which now provides loans through more than 1,360 authorized

independent mortgage brokers and correspondents in 34 states;

-- and UCFC has introduced a new conduit, Ginger Mae, to provide

non-conforming loan products through conforming lenders.

This division now serves 176 banks, thrifts and credit unions

in 15 states.

In the first quarter, the credit quality of UCFC's mortgages also improved. Delinquencies as a percentage of home equity loans serviced were reduced, continuing a trend in which delinquencies have dropped more than two percentage points over the past three years. The percentage of non-performing assets was also reduced. And credit losses remained less than 1% of the serviced loan portfolio on an annualized basis.

United Companies provides non-agency-conforming loans to non-prime credit borrowers, which are then secured in most cases by a first lien on the borrower's residence. In this way, UCFC allows consumers to use the equity in their homes to gain previously unavailable access to credit, thereby enabling the Company to serve a large and growing demographic base of customers who do not qualify for conventional loans.

Life Insurance/Annuity Operations:

Production increases were also achieved by United Companies Life Insurance, which markets annuities and other insurance products through over 400 independent agencies and financial institutions in 47 states. Annuity sales were $48.6 million, an 8% rise over $45.0 million in deposits collected in the first quarter, '94.

Finally, on April 10, 1995, United Companies announced it had entered into a letter of intent for the sale of its wholly-owned subsidiary, United General Title Insurance. It is anticipated that the sale will be completed by mid-summer of this year at an anticipated sales price of approximately $8.9 million.

United Companies, founded in 1946, is a $2 billion diversified financial services group of companies engaged in the mortgage lending and insurance industries in all 50 states. A publicly-owned corporation, common stock of United Companies is traded on The NASDAQ Stock Market under the symbol "UCFC." -0-

(Dollars in thousands,                  Three Months Ended
 except per share amounts)                  March 31,
                                       1995            1994
Mortgage Lending:
 Revenues                            $53,073          $42,458
 Operating income before taxes       $17,903          $20,619
Life Insurance/Annuities:
 Revenues                            $35,807          $32,914
 Operating income before taxes       $ 3,169          $ 1,579
Consolidated:
 Revenues                            $87,990          $74,817
 Operating income before taxes       $19,549          $20,832
 Income from continuing operations   $12,824          $13,477
 Income (loss) from discontinued
   title insurance operations          ($128)            $233
 Net income                          $12,696          $13,710
 Primary earnings per share from
   continuing operations               $0.91            $0.93
 Net income per share
  Primary                              $0.90            $0.95
  Fully diluted                        $0.90            $0.95

                  United Companies Financial Corporation
                Summary Supplemental Operating Information
                         (Dollars in thousands)

                           For the Three Months Ended March 31
                                1995         1994    +/(-)
Mortgage Lending/Production:
Home equity loan production  $  309,290   $  197,329   57%
Number of home equity
 loans produced                   7,225        4,537   59%
Average home equity loan
 production amount           $       43   $       43    0%

Mortgage Lending/Home Equity
 Loan Sales:
Public securitizations of
 loans sold                  $  274,653   $  178,326   54%
Loans sold to third parties  $  274,653   $  198,332   38%
Gain on loans sold (%)             9.73%       11.37% (14%)
Gain on loans sold
 ($ amount)                  $   26,734   $   22,554   19%
Gross interest spread
 retained on loans sold            4.42%        5.61% (21%)

Mortgage Lending/Servicing:
Total loan portfolio serviced
 (at period end)             $2,234,232/a $1,668,714   34%
Home equity loan portfolio
 serviced (at period end)    $1,895,955/a $1,248,424   52%
Home equity loans 30+ days
 past due (at period end)          7.09%/a      8.03% (12%)
Loan servicing income        $    4,734   $    4,977   (5%)

Life Insurance/Annuities:
Annuity premiums             $   48,563   $   45,029    8%
Annuity reserves (at period
 end)                        $1,440,233   $1,317,878    9%

Life Insurance/Investments:
Investment revenues          $   32,956   $   29,738   11%
Average net interest margin        2.38%        2.61%  (9%)

(a)  Includes $12.8 million sub-serviced by others in which UC
     Lending is the master servicer.

CONTACT: United Companies Financial Corporation, Baton Rouge

Louis J. Resweber, 1-800-234-UCFC ext. 2385