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CENTRAL RESERVE LIFE REPORTS INCREASED PREMIUMS; IMPROVED LOSS EXPERIENCE; AND SIGNIFICANTLY HIGHER THIRD QUARTER RESULTS

 STRONGSVILLE, Ohio, Nov. 8 /PRNewswire/ -- Central Reserve Life Corporation (NASDAQ: CRLC) today announced net income of $1,845,278 for the three months ended Sept. 30, 1993 compared to $1,131,845 last year. Net income per share rose 63 percent to $0.44 for the third quarter of 1993 versus $0.27 for the same period a year ago. These results benefited from a 20 percent increase in premiums to $53,549,777, higher investment income and a lower incurred loss ratio for the three months ended Sept. 30, 1993.
 Earlier this year, the company announced specific changes which were implemented to further strengthen the business and increase long-term profitability. These included expansion of managed care programs, review of pricing for certain insurance products and specific cost control measures. A portion of those results were realized in the third quarter of 1993 and management anticipates additional positive contributions from those actions during the remainder of 1993 and 1994.
 For the nine months ended Sept. 30, 1993, Central Reserve Life earned $875,354 compared to $2,604,248 for the same period in 1992. Net income per share was $0.21 and $0.62, respectively, for the first nine months of 1993 and 1992, respectively. Total revenues were $153,555,267 for the nine months ended Sept. 30, 1993 versus $125,226,887 last year, an increase of 23 percent.
 Fred Lick, Jr., chairman and chief executive officer, stated, "We are pleased with the results for the third quarter of 1993 and continued double digit growth in Central Reserve's premium revenues. The prudent actions which were taken last Spring positively impacted results for the three months ended Sept. 30, 1993 and are expected to provide additional positive contributions to future results. Central Reserve continues to implement managed care strategies to provide small businesses with high quality, cost effective health and accident insurance as well as related financial products to meet their specific needs."
 NET CERTIFICATES IN FORCE UP 8 PERCENT IN 1993
 For the nine months ended Sept. 30, 1993, net certificates in force totaled 103,756, an increase of 8 percent for the year-to-date period. There were 27,609 new certificates issued for the first nine months of 1993 versus 28,552 a year ago. The number of certificates which lapsed during this period totaled 20,028 in 1993, compared to 14,016 in 1992. A new short-term insurance product was introduced during the third quarter of 1992 which influences the lapse rate due to its persistency experience, which is lower than other policies issued by the company.
 RESERVE AND ACCRUAL FOR CLAIMS STRENGTHENED IN RESPONSE TO SOLID PREMIUM GROWTH
 The reserve and accrual for claims was $51,564,501 on Sept. 30, 1993 compared to $38,836,847 at year-end 1992. As a result of improvement in the claims experience for the third quarter of 1993, the $4.5 million increase in the reserve and accrual for claims for this period was primarily in response to premium growth of 20 percent for the period.
 THIRD QUARTER INCURRED LOSS RATIO 65.7 PERCENT VERSUS 67.2 PERCENT IN 1992
 For the three months ended Sept. 30, 1993, the incurred loss ratio declined to 65.7 percent from 67.2 percent a year ago. This improvement is particularly significant compared to the incurred loss experience earlier this year. For the first nine months of 1993, the incurred loss ratio was 69.3 percent. Management previously indicated that changes implemented earlier this year combined with improved performance were expected to favorably impact incurred losses in future periods.
 NET INVESTMENT INCOME INCREASES 20 PERCENT
 Total assets increased $12,000,368, or 14 percent during the first nine months of this year to $97,699,844 on Sept. 30, 1993. Investment income, influenced by generally lower interest rates, increased 21 percent for the third quarter of 1993 compared to last year. 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.
 THIRD QUARTER CASH DIVIDEND 11 PERCENT HIGHER
 The board of directors declared a quarterly cash dividend of 10 cents per share for the third quarter of 1993, which was paid on Sept. 30, 1993 to shareholders of record on Sept. 15, 1993. Total cash dividends paid per share were 30 cents for the first nine months of 1993 compared to 27 cents last year, an increase of 11 percent. Shareholders' equity was $25,744,339 on Sept. 30, 1993, which represents $6.40 per share on that date.
 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 concentrates its sales in the Midwest, Southeast and Southwest regions of the U.S.
 CENTRAL RESERVE LIFE CORPORATION
 AND SUBSIDIARIES
 CONSOLIDATED CONDENSED STATEMENT OF INCOME
 (UNAUDITED)
 Three Months Ended
 Sept. 30, Sept. 30,
 1993 1992(A)
 REVENUES:
 Premiums $53,549,777 $44,617,107
 Investment income 1,333,062 1,104,690
 Gain on sales/calls of investments 177,700 130,847
 Other income --- 23,906
 Total 55,060,539 45,876,550
 BENEFITS, LOSSES AND EXPENSES:
 Benefits, claims, losses and
 settlement expenses 35,178,415 29,994,396
 Commissions 8,450,241 6,985,609
 Other operating expenses 8,869,605 7,549,414
 Total 52,498,261 44,529,419
 Net income before federal
 income taxes 2,562,278 1,347,131
 Federal income tax expense 717,000 215,286
 Net Income $1,845,278 $1,131,845
 Weighted average shares
 outstanding 4,172,024 4,193,867
 Net income per share $.44 $.27
 Nine Months Ended
 Sept. 30, Sept. 30,
 1993 1992(A)
 REVENUES:
 Premiums $153,555,267 $125,226,887
 Investment income 3,785,318 3,266,975
 Gain on sales/calls of investments 508,539 290,233
 Other income --- 70,251
 Total 157,849,124 128,854,346
 BENEFITS, LOSSES AND EXPENSES:
 Benefits, claims, losses and
 settlement expenses 106,393,322 82,944,494
 Commissions 23,706,626 19,417,253
 Other operating expenses 26,396,822 23,360,836
 Total 156,496,770 125,722,583
 Net income before federal
 income taxes 1,352,354 3,131,763
 Federal income tax expense 477,000 527,515
 Net Income $ 875,354 $2,604,248
 Weighted average shares
 outstanding 4,180,802 4,164,142
 Net income per share $.21 $.62
 (A) -- Certain amounts for 1992 have been restated to reflect the adoption of Financial Accounting Standards No. 109, "Accounting for Income Taxes."
 -0- 11/8/93
 /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-TJ -- CL002 -- 1596 11/08/93 08:55 EST
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