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AMERICAN TRAVELLERS CORPORATION ANNOUNCES RECORD THIRD QUARTER AND NINE MONTH RESULTS

 BENSALEM, Pa., Nov. 11 /PRNewswire/ -- American Travellers Corp. (NASDAQ: ATVC) today announced record revenues and pre-tax earnings for the third quarter and nine months ended Sept. 30, 1993.
 The company stated that, for comparative purposes, third quarter net income, before giving effect to a one-time deferred tax adjustment (discussed below), was $4.1 million, or $.39 per share, up 86 percent from $2.13 million, or $.21 per share, for the third quarter of l992. Net income for the third quarter, after the tax adjustment, was $3.25 million, or $.31 per share, an increase of 48 percent compared to the third quarter of 1992. For the third quarter of 1993, revenues increased 22 percent to $44.8 million compared to $36.8 million in the same period of 1992.
 For the nine months ended Sept. 30, 1993, net income before the tax adjustment was $11.2 million, or $1.07 per share, up 37 percent from $8.1 million or $.78 per share for the first nine months of 1992. Net income for the nine months, after the tax adjustment, was $10.4 million or $.99 per share, up 27 percent compared to the same period in 1992.
 The aforementioned tax adjustment reflects the recent increase in the corporate federal income tax rate from 34 percent to 35 percent which was set forth in the Omnibus Budget Reconciliation Act of 1993. Statement of Financial Accounting Standards No. 109 (SFAS No. 109) requires that the company's deferred tax liability be adjusted to reflect this increase in the tax rate. The adjustment, totalling $810,000, or $.08 per share, consisted of a $702,000 charge for years 1992 and prior, and a $108,000 charge for the first six months of 1993. In addition, the company incurred an additional $62,000 deferred tax liability for the third quarter of 1993 as a result of the new tax rate.
 According to American Travellers' chairman of the board, John A. Powell, the increases in revenues and net income are a result of an increase in the new business premiums, which increased by $4.73 million, or 40 percent, comparing the third quarter of 1993 to the same period in 1992, and by $15.31 million, or 48 percent, comparing the first nine months of 1993 to the comparable period in 1992. New business premiums in the long term care product line, the company's primary focus, were up 52 percent for the quarter and 81 percent for the nine months ended Sept. 30, 1993, compared to the corresponding periods in 1992.
 American Travellers Corp. is engaged, through its subsidiaries, in the underwriting and marketing of long term care insurance including nursing home care and home health care. The company is licensed in 44 states plus the District of Columbia and the U.S. and British Virgin Islands.
 AMERICAN TRAVELLERS CORPORATION
 (000s omitted except per-share data)
 Third quarter ending
 Sept. 30 1993 1992 Percent Change
 Revenues $44,838 $36,800 22
 Net income 3,250(A) 2,131 53
 EPS $.31(B) $.21 49
 Average weighted number
 of shares 10,583 10,369 2
 Nine months ending
 Sept. 30 1993 1992 Percent Change
 Revenues $131,309 $108,551 21
 Net income 10,365(A) 8,135 27
 EPS $.99(B) $.78 27
 Average weighted number
 of shares 10,488 10,418 1
 (A) Included are $62, $108 and $702 in federal income taxes for the third quarter of 1993, the first six months of 1993, and 1992 and prior years, respectively, relating to the recently enacted increase in corporate tax rates from 34 percent to 35 percent on taxable income over $10,000.
 (B) Includes $.08 per share relating to the above federal income tax rate adjustment.
 AMERICAN TRAVELLERS CORPORATION AND SUBSIDARIES
 Consolidated Statements of Income
 (Unadited, in thousands except per-share data)
 Three months ended Sept. 30 1993 1992
 Revenues:
 Accident and health premiums $41,180 $33,598
 Life premiums 1,247 811
 Net investment income 2,334 2,293
 Realized investment gains 77 98
 Total revenues 44,838 36,800
 Benefits and expenses:
 Benefits to policyholders 22,059 18,466
 Commissions 14,534 10,556
 General and administrative 7,576 6,671
 Amortization of deferred policy
 acquisition costs 6,240 5,876
 Less: policy acquisition costs
 deferred (11,741) (7,997)
 Total benefits and expenses 38,668 33,572
 Income before provision for
 income taxes 6,170 3,228
 Provision for income taxes:
 Provision for income taxes on
 current period earnings 2,110 1,097
 Deferred tax adjustment for change
 in tax rate 810 ---
 Total provision for income taxes 2,920 1,097
 Net income 3,250 2,131
 Earnings per common share $.31 $.21
 Weighted average number of shares

 outstanding 10,583 10,369
 Nine months ended Sept. 30 1993 1992
 Revenues:
 Accident and health premiums $121,572 $99,988
 Life premiums 2,638 1,964
 Net investment income 6,878 6,462
 Realized investment gains 221 137
 Total revenues 131,309 108,551
 Benefits and expenses:
 Benefits to policyholders 65,619 53,701
 Commissions 43,012 31,631
 General and administrative 21,838 19,684
 Amortization of deferred policy
 acquisition costs 18,000 14,700
 Less: policy acquisition costs
 deferred (34,111) (23,490)
 Total benefits and expenses 114,358 96,226
 Income before provision for
 income taxes 16,951 12,325
 Provision for income taxes:
 Provision for income taxes on current
 period earnings 5,776 4,190
 Deferred tax adjustment for change
 in tax rate 810 ---
 Total provision for income taxes 6,586 4,190
 Net income 10,365 8,135
 Earnings per common share $.99 $.78
 Weighted average number of shares
 outstanding 10,488 10,418
 /delval/
 -0- 11/11/93
 /CONTACT: John A. Powell, chairman of American Travellers, 215-244-1600/
 (ATVC)


CO: American Travellers Corporation ST: Pennsylvania IN: INS SU: ERN

MJ-JM -- PH028 -- 3391 11/11/93 16:43 EST
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Date:Nov 11, 1993
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