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CENTRAL RESERVE LIFE CORPORATION REPORTS LOWER THREE MONTH RESULTS

 STRONGSVILLE, Ohio, Aug. 9 /PRNewswire/ -- Central Reserve Life Corporation (NASDAQ: CRLC) today reported premiums for the three months ended June 30, 1993, rose 22 percent to $50,882,199 from $41,613,887 a year ago. Results for the second quarter of 1993 included a net loss of $251,584, or 6 cents per share, versus net income of $851,843, or 20 cents per share, in 1992.
 For the six months ended June 30, 1993, premiums increased 24 percent to $100,005,319 compared to $80,609,780 for the same period last year. Results for the first half of 1993 include a net loss of $969,924, or 23 cents per share, versus net income of $1,472,403, or 35 cents per share, a year ago.
 Fred Lick, Jr., chairman and chief executive officer, commented, "Despite continued weakness in the national economy, the Company continues to benefit from small businesses seeking health insurance coverage for their employees. The number of certificates in force recently exceeded 100,000 for the first time in Central Reserve's history. We remain optimistic concerning improvement in financial results during the second half of 1993. This is due to specific steps taken earlier this year to improve Central Reserve's long-term profitability."


RECORD NUMBER OF CERTIFICATES IN FORCE
 The number of certificates in force surpassed 100,000 for the first time in the company's history and totaled 101,712 on June 30, 1993. During the past six months, net certificates in force have increased 6 percent. For the six months of 1993, there were 18,182 new certificates issued compared to 19,738 a year ago. Lapsed Certificates increased to 12,645 from 8,941 for the six months ended June 30, 1993 and 1992, respectively. The increase in lapses is attributed to a short term product which is designed to be temporary for that person requiring such a product until a permanent policy is available.


RESERVE AND ACCRUALS FOR FUTURE CLAIMS EXCEEDS $47 MILLION
 On June 30, 1993 the reserve and accruals for future claims was $47,060,754, an increase of 21 percent since year-end 1992. The reserve and accruals for future claims rose approximately $4.6 million during the second quarter of 1993 in response to continued growth in premiums and claims experience.


NET INVESTMENT INCOME INCREASES 13 PERCENT
 Total investments increased to $66,632,129 on June 30, 1993 versus $59,305,499 at Dec. 31, 1992. Investment income increased 13 percent for the second quarter of 1993 compared to last year. Despite the solid increase in total investments, income continues to be impacted by generally lower interest rates. The investment portfolio remains strong due to the quality and mix of investment maturities. There are no "junk" bonds or commercial real estate loans in the investment portfolio.


INCURRED LOSS RATIO HIGHER
 Policy benefits incurred totaled $36,384,352 for the second quarter of 1993 versus $27,320,327 a year ago. This represents 71.5 percent of premiums for the three months ended June 30, 1993 compared to 65.7 percent for the same period last year. The incurred loss ratio is currently expected to decline to a more normal level during the second half of 1993 in response to changes implemented earlier this year combined with improved performance.


CASH DIVIDENDS UP 11 PERCENT
 On May 20, 1993, the board of directors declared a quarterly cash dividend of 10 cents per share, which was paid on June 30, 1993 to shareholders of record on June 15, 1993. The total cash dividends paid per share for the first six months of 1993 were 20 cents versus 18 cents for the same period a year ago, an increase of 11 percent. Shareholders' equity was $24,285,905 on June 30, 1993, which represents $6.04 per share.
 Central Reserve Life Corporation is a leading provider of 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
 June 30 June 30
 1993 1992(A)
 REVENUES:
 Premiums $50,882,199 $41,613,887
 Investment income 1,256,298 1,107,911
 Gain (loss) on sales
 of investments 197,652 192,814
 Other income 110 (10,103)
 Total 52,336,259 42,904,509
 Benefits, Losses and Expenses:
 Benefits, claims, losses and
 settlement expenses 36,384,352 27,320,327
 Commissions 7,613,905 6,530,425
 Other operating expenses 8,654,586 8,047,200
 Total 52,652,843 41,897,952
 Income (loss) before federal
 income taxes (316,584) 1,006,557
 Federal income tax
 expense (benefit) (65,000) 154,714
 Net Income (Loss) $ (251,584) $ 851,843
 Weighted average shares
 outstanding 4,174,248 4,188,861
 Net income (loss) per share $(.06) $.20
 Six Months Ended
 June 30 June 30
 1993 1992(A)
 REVENUES:
 Premiums $100,005,319 $ 80,609,780
 Investment income 2,452,256 2,162,285
 Gain (loss) on sales
 of investments 330,839 159,386
 Other income 171 46,345
 Total 102,788,585 82,977,796
 Benefits, Losses and Expenses:
 Benefits, claims, losses and
 settlement expenses 71,214,907 52,950,098
 Commissions 15,256,385 12,431,644
 Other operating expenses 17,527,217 15,811,422
 Total 103,998,509 81,193,164
 Income (loss) before federal
 income taxes (1,209,924) 1,784,632
 Federal income tax
 expense (benefit) (240,000) 312,229
 Net Income (Loss) $ (969,924) $1,472,403
 Weighted average shares
 outstanding 4,185,285 4,176,328
 Net income (loss) per share $(.23) $.35
 (A) -- Certain amounts for 1992 have been restated to reflect the adoption of Financial Accounting Standards No. 109, "Accounting for Income Taxes."
 -0- 8/9/93
 /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/
 (CRLC)


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

BM -- CL009 -- 0787 08/09/93 13:35 EDT
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Date:Aug 9, 1993
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