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CENTRAL RESERVE LIFE CORPORATION ANNOUNCES INCREASED 1992 EARNINGS

 STRONGSVILLE, Ohio, March 3 /PRNewswire/ -- Central Reserve Life Corporation (NASDAQ/NMS: CRLC) today announced net income of $3,524,217 for the twelve months ended Dec. 31, 1992, compared to $2,928,276 for the same period a year ago. The 1991 results were restated to reflect adoption of SFAS No. 109, Accounting for Income Taxes. Net income per share was $0.85 for 1992 versus $0.71 the previous year. Total revenues rose 22 percent in 1992 to $177,132,426 from $145,662,374 in 1991, benefiting from solid growth in premiums and increased investment income.
 For the three months ended Dec. 31, 1992, premiums were 27 percent higher, totaling $46,783,128 compared to $36,779,130 for the same period last year. Investment income rose 21 percent to $1,339,061 for the fourth quarter of 1992 versus $1,103,189 a year ago. Results for the three months ended Dec. 31, 1992, were affected by an unexpectedly larger increase in the reserve and accruals for future claims and to a lesser extent by adoption of SFAS No. 109. Net income was $919,969 for the fourth quarter of 1992, compared to $1,537,116 a year ago. Net income per share totaled $0.23 for the three months ended Dec. 31, 1992, versus $0.37, on a restated basis, last year.
 Fred Lick, Jr., chairman and chief executive officer, commented, "The significant growth in premiums during 1992, combined with well defined managed health care controls, were offset by a rise in commissions and a larger than anticipated increase in the reserve and accruals for future claims than anticipated which affected 1992 earnings. The balance sheet has been significantly strengthened as a result of increases in the reserve and accruals for future claims. We are in a solid position to achieve further improvement in the Company's profitability."
 RECORD NUMBER OF CERTIFICATES ISSUED AND IN FORCE
 DURING 1992; REDUCTION IN LAPSE RATE
 The number of certificates in force increased 22 percent in 1992, totaling 96,177 on Dec. 31, 1992. There were 36,836 new certificates issued during the year compared to 24,241 in 1991. Importantly, favorable retention rates prevailed throughout the year, resulting in a reduction in the lapse rate between 1991 and 1992. Programs implemented during 1991 to reward good risks continued to benefit the company's performance.
 INCURRED LOSS RATIO REMAINED STABLE IN 1992
 Total benefit and claims were $114,394,481 for the twelve months ended Dec. 31, 1992 compared to $93,822,382 the previous year. Incurred losses as a percent of premiums were 66.5 percent and 66.6 percent for 1992 and 1991, respectively.
 RESERVE ACCRUALS FOR FUTURE CLAIMS SIGNIFICANTLY STRENGTHENED
 Management increased the reserve and accruals for future claims by 33 percent during 1992 in response to substantial premium growth throughout the year and a higher number of large claims in the fourth quarter. On Dec. 31, 1992, the reserve and accruals for future claims totaled $38,836,847, compared to $28,931,749 the previous year.
 INVESTMENT PORTFOLIO INCREASED 33 PERCENT IN 1992
 Total Investments were $59,305,499 on Dec. 31, 1992, an increase of 33 percent over the same date in 1991. Fixed maturities rose $9,675,014, while short-term investments were $5,000,000 higher at year- end 1992. The company's improved cash flow offset the adverse impact of lower interest rates in 1992. The quality of the investment portfolio remains strong due to the mix of investments in the portfolio and there are no "junk" bonds or commercial real estate loans in the portfolio.
 BOOK VALUE PER SHARE INCREASED 9 PERCENT; CASH DIVIDENDS HIGHER FOR
 THIRTEENTH CONSECUTIVE YEAR
 Shareholders' Equity increased to $26,015,001 on Dec. 31, 1992, from $23,798,571 the previous year. Book value per share was $6.49 at year- end 1992 compared to $6.00 a year ago. The company paid cash dividends of $0.36 per share during 1992, a 13 percent increase over the amount paid in 1991. This represents the thirteenth consecutive year that the board of directors has approved a higher cash dividend.
 Central Reserve Life Corporation is a leading insurer of preferred risk accident and health insurance and related financial products, specializing in groups of 50 or fewer employees. Based in Strongsville, Ohio, the company is currently active in 20 of the 36 states in which it is admitted.
 CENTRAL RESERVE LIFE CORPORATION
 AND SUBSIDIARIES
 CONSOLIDATED CONDENSED STATEMENT OF INCOME
 (UNAUDITED)
 Three Months Ended
 December 31
 1992 1991
 REVENUES:
 Premiums $46,783,128 $36,779,130
 Investment Income 1,339,061 1,103,189
 Gain (Loss) on Sales of Investments 224,446 (28,445)
 Other Income (Loss) (68,555) 4,332
 Total $48,278,080 $37,858,206
 Benefits, Losses and Expenses:
 Benefits, Claims, Losses and
 Settlement Expenses $31,449,988 $23,101,159
 Commissions 7,359,885 5,305,269
 Other Operating Expenses 9,110,334 7,243,675
 Total $47,920,207 $35,650,103
 Net Income Before Federal
 Income Taxes $ 357,873 $ 2,208,103
 Federal Income Taxes (562,096) 670,987
 Cumulative effect at Jan. 1, 1991
 of change in accounting for income
 tax --- ---
 Net Income $ 919,969 $1,537,116
 Net Income Per Share $.23 $.37
 Twelve Months Ended
 December 31
 1992 1991
 REVENUES:
 Premiums $172,010,014 $140,982,753
 Investment Income 4,606,036 4,481,145
 Gain (Loss) on Sales of Investments 514,679 165,416
 Other Income (Loss) 1,697 33,060
 Total $177,132,426 $145,662,374
 Benefits, Losses and Expenses:
 Benefits, Claims, Losses and
 Settlement Expenses $114,394,481 $93,822,382
 Commissions 26,777,138 20,361,254
 Other Operating Expenses 32,471,171 27,261,216
 Total $173,642,790 $141,444,852
 Net Income Before Federal
 Income Taxes $3,489,636 $4,217,522
 Federal Income Tax (34,581) 1,118,577
 Cumulative effect at Jan. 1, 1991
 of change in accounting for income
 tax --- 170,669
 Net Income $3,524,217 $2,928,276
 Net Income Per Share $.85 $.71
 -0- 3/3/93
 /CONTACT: Frank Grimone, CFO of Central Reserve Life Corporation, 216-572-2400; or Robert A. Lentz of Robert A. Lentz & Associates, Inc., 614-228-2142, for Central Reserve Life Corp./
 (CRLC)


CO: Central Reserve Life Corporation ST: Ohio IN: INS SU: ERN

BM -- CL004 -- 2363 03/03/93 10:33 EST
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Date:Mar 3, 1993
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