Blue Cross and Blue Shield of Florida Reports Positive First Quarter Performance.

Business Editors

JACKSONVILLE, Fla.--(BUSINESS WIRE)--April 28, 2000

Blue Cross and Blue Shield of Florida (BCBSF) today reported positive first quarter consolidated net income of $24.8 million reflecting improvement over first quarter 1999 consolidated net income of $16.2 million. "Our positive first quarter performance gives us a good start for the rest of the year," said R. Chris Doerr, senior vice president and chief financial officer.

BCBSF also increased policyholders' equity by $85.7 million during the past 12 months, bringing the total to $930 million - a 10 percent increase over first quarter 1999 of $844.3 million. Policyholders' equity provides a strong foundation to support the development of capabilities that improve health care quality for members while lowering overall costs. The equity enables the company to meet its obligations when claims or expenses are higher than anticipated.

Since first quarter 1999, Blue Cross and Blue Shield of Florida added approximately 300,000 new members reflecting 12.5 percent growth in enrollment across all lines of business: Total enrollment is currently 2.7 million members over 2.4 million members reported first quarter 1999. "Our solid financial performance and enrollment gains help to reinforce customer confidence in our brand and ability to continue providing Floridians with access to quality and affordable health care choices," said Doerr.

BCBSF is an independent licensee of the Blue Cross and Blue Shield Association, an association of independent Blue Cross and Blue Shield companies. A financially strong, tax-paying mutual company, BCBSF is subject to the same regulation by the Department of Insurance as other health care organizations operating in Florida. Standard and Poor's affirmed its "A+" financial strength and credit ratings of BCBSF, and A.M. Best Company affirmed its "A" rating. The ratings are based on BCBSF's strong market position, good earnings profile and excellent capitalization. Blue Cross and Blue Shield of Florida is a Security Circle insurer, which means it voluntarily underwent Standard & Poor's most comprehensive analysis and was assigned a rating in one of the top four categories for financial security. For additional information about BCBSF, visit its World Wide Web site at www.bcbsfl.com.