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CAPITOL AMERICAN FINANCIAL ANNOUNCES RECORD FIRST QUARTER RESULTS

 CLEVELAND, May 10 /PRNewswire/ -- Capitol American Financial Corporation (NYSE: CAF) had record net income, revenues and premiums earned for the quarter ended March 31, 1993, it was announced today by Chairman and Chief Executive Officer David H. Gunning.
 Net income of $10,037,000 in the first quarter was 21.4 percent greater than the $8,266,000 earned in the first quarter of 1992. Per share earnings were 54 cents on the basis of 18,499,368 weighted average shares outstanding, compared with 52 cents in last year's first quarter on the basis of 15,968,590 weighted average shares outstanding. The increased shares reflect the company's initial public offering last December.
 Revenues of the supplemental health insurance company were $67,453,000 for the quarter, an increase of 17.5 percent over year-ago revenues of $57,392,000. Premiums earned in the first quarter of 1993 were $59,472,000, a 14.4 percent increase over the premiums earned of $51,965,000 in the same period in 1992.
 Gunning, who was elected chairman, president and chief executive officer on Feb. 2, 1993, stated: "The solid growth for the quarter is a continuation of Capitol American's more than 20-year tradition of steadily improving revenues and profits. I am confident that the results for the full year will set records in both of these categories as well."
 Sales of new policies during the quarter totalled $17.1 million, down slightly from $17.8 million a year ago. Gunning commented that improved sales of new policies by the Consumer Marketing Group were offset by reduced sales by the Business Marketing Group. "We believe that the level of Business Marketing Group sales was primarily a matter of timing with respect to the enrollment of larger employer groups, which can fluctuate significantly quarter-to-quarter."
 Total assets at March 31, 1993 were $577,963,000, up 5.4 percent from year-end 1992.
 Capitol American Financial Corporation is a leading supplemental insurance company with a history of substantial growth and financial strength. The company's market focus is on specialty lines including cancer, accident, intensive care and heart insurance programs. Capitol American is licensed in 47 states and has more than 660,000 policies in force.
 CAPITOL AMERICAN FINANCIAL CORPORATION
 First Quarter
 Ended March 31
 (In thousands except per share data) 1993 1992
 Premiums earned $59,472 $51,965
 Income from investments 7,847 5,299
 Other income 134 128
 Total revenues 67,453 57,392
 Policyholders' benefits 13,895 12,567
 Increase in future policy benefits 15,710 12,317
 Renewal commissions 8,859 7,690
 Amortization of deferred policy
 acquisition costs 5,524 5,112
 General and administrative expenses 7,852 6,827
 Interest expense 424 387
 Total benefits and expenses 52,264 44,900
 Income before income taxes 15,189 12,492
 Income taxes 5,152 4,226
 Net income 10,037 8,266
 Weighted average shares 18,499 15,969
 Net income per share $ .54 $ .52
 Quarter Ended Year Ended
 Balance Sheet Items March 31, 1993 Dec. 31, 1992
 U.S. Treasury securities $324,677 $307,889
 Total investments 359,995 333,929
 Total assets 577,963 548,138
 Notes payable 20,000 20,000
 Shareholders' equity 186,654 177,700
 -0- 5/10/93
 /CONTACT: Douglas B. Kelly of Capitol American Financial Corporation, 216-696-6400/
 (CAF)


CO: Capitol American Financial Corporation ST: Ohio IN: INS SU: ERN

BM -- CL020 -- 6555 05/10/93 14:28 EDT
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Publication:PR Newswire
Date:May 10, 1993
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