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CAPITOL AMERICAN FINANCIAL ANNOUNCESRECORD YEAR-END RESULTS

 CLEVELAND, Feb. 10 /PRNewswire/ -- Capitol American Financial Corporation (NYSE: CAF) had record revenues, premiums earned and net income for the year ended Dec. 31, 1992, it was announced today by Chairman and Chief Executive Officer David H. Gunning.
 Revenues of the supplemental health insurance company were $242,804,000, an increase of 17.7 percent over year-ago revenues of $206,377,000. Premiums earned in 1992 were $219,491,000, a 16.5 percent increase over the premiums earned of $188,435,000 in 1991.
 Net income of $34,981,000, or $2.19 per share, was 21.2 percent greater than the $28,874,000, or $1.77 per share, earned in 1991 before the cumulative effect of a change in accounting for income taxes which increased 1991 earnings by $3,731,000, or 23 cents, share. There were no non-recurring income items in 1992.
 "The year was a milestone by many measures and reflects the success of the company's expanding business and consumer marketing programs for supplemental health insurance and increasing operating efficiencies," Gunning said.
 In the fourth quarter, the company had net income of $9,343,000, or 58 cents a share, up 37.1 percent from year-ago fourth quarter net income of $6,816,000, or 43 cents a share. Fourth quarter 1991 earnings included a pretax charge of $1,845,000, or eight cents a share after- tax, for settlement of a lawsuit. Revenues were $64,511,000, up 16.5 percent from $55,354,000 and premiums earned were up 15.9 percent to $58,214,000 from $50,209,000.
 Gunning, who was elected chairman, president and chief executive officer on Feb. 1, 1993, said, "Increasing public awareness of the need for and advantages of supplemental health insurance is a major factor in the company's continuing growth. Cancer insurance, which provides cash benefits tailored to fill some of the gaps in standard major medical policies, accounts for 71.2 percent of the company's business."
 Total assets at year-end were $548,138,000, up 37.8 percent from $397,726,000 at the end of 1991.
 Capitol American Financial 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 650,000 policies in force.
 Fourth Quarter
 Ended December 31
 (In thousands except per share data) 1992 1991
 Premiums earned $58,214 $50,209
 Income from investments 6,158 5,025
 Other income 139 120
 Total revenues 64,511 55,354
 Benefits 28,860 23,458
 Operating expenses 21,000 20,620
 Interest expense 357 472
 Total benefits & expenses 50,217 44,550
 Income before income taxes 14,294 10,804
 Income taxes 4,951 3,988
 Income before cumulative effect of change
 in accounting for income taxes $9,343 $6,816
 Cumulative effect of change in accounting
 for future taxes --- ---
 Net income $9,343 $6,816
 Weighted average shares (in thousands) 16,077 15,967
 Earnings per share
 Before cumulative effect of change
 in accounting for income taxes $.58 $.43
 Cumulative effect of change in
 accounting for income taxes --- ---
 Net income $.58 $.43
 Key ratios
 Benefits ratio (pct) 44.7 42.4
 Expense ratio (pct) 36.1 41.1
 Balance sheet items
 U.S. Treasury securities
 Total investments
 Total assets
 Notes payable
 Shareholders' equity
 Year
 Ended December, 31
 (In thousands except per share data) 1992 1991
 Premiums earned $219,491 $188,435
 Income from investments 22,771 17,471
 Other income 542 471
 Total revenues 242,804 206,377
 Benefits 108,347 87,257
 Operating expenses 79,865 73,707
 Interest expense 1,565 1,187
 Total benefits & expenses 189,777 162,151
 Income before income taxes 53,027 44,226
 Income taxes 18,046 15,352
 Income before cumulative effect of change
 in accounting for income taxes $34,981 $28,874
 Cumulative effect of change in accounting
 for future taxes --- 3,731
 Net income $34,981 $32,605
 Weighted average shares (in thousands) 15,994 16,319
 Earnings per share
 Before cumulative effect of change
 in accounting for income taxes $2.19 $1.77
 Cumulative effect of change in
 accounting for income taxes --- .23
 Net income $2.19 $2.00
 Key ratios
 Benefits ratio (pct) 44.6 42.3
 Expense ratio (pct) 36.4 39.1
 Balance sheet items
 U.S. Treasury securities $307,889 $187,728
 Total investments 333,929 210,358
 Total assets 548,138 397,726
 Notes payable 20,000 21,000
 Shareholders' equity 177,700 90,677
 -0- 2/10/93
 /CONTACT: Doug Kelly of Capitol American Financial Corporation, 216-696-6400/
 (CAF)


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

KK -- CL016 -- 5319 02/10/93 16:13 EST
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