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AMERICAN TRAVELLERS CORPORATION ANNOUNCES FOURTH QUARTER AND YEAR-END RESULTS

 AMERICAN TRAVELLERS CORPORATION ANNOUNCES
 FOURTH QUARTER AND YEAR-END RESULTS
 BENSALEM, Pa., March 3 /PRNewswire/ -- American Travellers Corporation (NASDAQ: ATVC) today announced its financial results for the fourth quarter of 1991 and for the year ended Dec. 31, 1991.
 During the quarter, revenues increased 62.4 percent to $38 million from $23.4 million in the fourth quarter of 1990. For the year ended Dec. 31, 1991, revenues increased 53.6 percent to $125 million from $81.4 million for 1990. Net income during the company's 1991 fourth quarter was $3.1 million or $.30 per share as compared with $3.1 million or $.31 per share in the corresponding 1990 period. Earnings in the fourth quarter were adversely affected by a $.06 per share charge as a result of the cost of settlement of two extraordinary policy claims. The company also announced that it was restating its earnings for the second and third quarters as $2.6 million or $.25 per share and $2.9 million or $.28 per share, respectively, to correct errors in the previously reported earnings. For the 12 months ended Dec. 31, 1991, net income was $11.3 million or $1.09 per share as compared with $11.5 million or $1.32 per share during the 12 months ended Dec. 31, 1990.
 According to American Travellers Chairman John A. Powell, the company settled the policy claims litigation, despite its denial of liability, to avoid the potential risk of punitive damages in insurance company litigation. The company previously announced earnings in the second and third quarters of $3.4 million or $.33 per share and $3.6 million or $.35 per share, respectively. Powell explained that the adjustments to second and third quarter earnings were necessary to correct errors in recording certain expenses and acquisitions completed during 1991. Management has taken such actions as it deems appropriate to prevent a reoccurrence of similar events.
 Powell noted that margins for the year were down primarily due to lower investment income, litigation settlements, increased utilization of the company's Medicare Supplement policies and increased non- deferrable expenses.
 Powell added that he was encouraged by the fourth quarter operating results before giving effect to the litigation settlements. He said he was pleased by a shift in the mix of the company's products to its more profitable Long-Term Care product line, rate increases recently approved and implemented on Medicare Supplement policies and the potential for new sales as a result of its recent entry into the California market. California has 30 percent more senior citizens than Florida, which is the company's largest producing state.
 AMERICAN TRAVELLERS CORPORATION
 (In thousands)
 Fourth quarter Percent
 ended Dec. 31 1991 1990 Change
 Revenues $37,995 $23,403 62.4
 Net income 3,142(A) 3,119 .8
 EPS $.30 $.31 (3.2)
 Average weighted
 number of shares 10,409 10,178 2.3
 12 months Percent
 ended Dec. 31 1991 1990 Change
 Revenues $124,974 $81,395 53.6
 Net income 11,268(A) 11,538 (2.3)
 EPS $1.09 $1.32 (17.4)
 Average weighted
 number of shares 10,366 8,744 18.5
 (A) Includes charge of $1 million from settlement of litigation involving two policy claims.
 Third quarter ended Sept. 30 1991 1991
 (Restated) (As Previously
 Reported)
 Revenues $30,728 $30,728
 Net income 2,888 3,604
 EPS $.28 $.35
 Average weighted number of shares 10,387 10,387
 Second quarter ended June 30 1991 1991
 (Restated) (As Previously
 Reported)
 Revenues $30,696 $30,696
 Net income 2,564 3,424
 EPS $.25 $.33
 Average weighted number of shares 10,376 10,376
 /delval/
 -0- 3/3/92
 /CONTACT: John A. Powell, chairman of American Travellers, 215-244-1600/
 (ATVC) CO: American Travellers Corporation ST: Pennsylvania IN: INS SU: ERN


MP-KA -- PH008 -- 4390 03/03/92 10:10 EST
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Date:Mar 3, 1992
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