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CENTRAL RESERVE LIFE REPORTS SHARP INCREASE IN SECOND QUARTER AND FIRST HALF EARNINGS

 CENTRAL RESERVE LIFE REPORTS SHARP INCREASE IN
 SECOND QUARTER AND FIRST HALF EARNINGS
 STRONGSVILLE, Ohio, Aug. 10 /PRNewswire/ -- Central Reserve Life Corporation (NASDAQ/NMS: CRLC) today announced net income of $1,475,250 for the first six months of 1992, compared to $315,827 for the same period last year. Net income per share was $.35 for the first half of 1992 versus $.08 a year ago. Results for the first half of 1992 benefitted from a 19 percent increase in premiums and a reduction in the incurred loss ratio from 69 percent to 66 percent.
 For the three months ended June 30, 1992, net income totalled $897,175 versus $544,105 in 1991. These results represent earnings per share of $.21 compared to $.13 for the same period last year. Premiums grew 21 percent to $42,378,161 for the second quarter of this year, while the incurred loss ratio declined to 66 percent.
 Fred Lick, Jr., chairman and chief executive officer, stated, "Results for the most recent quarter provide further evidence of the progress which is being made to attract and retain quality business and manage it more efficiently through well defined systems and controls. Currently, we are optimistic about the outlook for the remainder of this year and we continue to implement new managed health care controls, which will achieve long-term growth objectives." RECORD NUMBER OF CERTIFICATES ISSUED AND IN FORCE
 On June 30, 1992, there were 89,672 certificates in force, an increase of 14 percent over year end 1991. New certificates issued for the first half of this year totalled 19,738 compared to 10,889 last year. Importantly, total lapses declined by 1,338 between the two periods, which contributed to the increase in certificates in force. Favorable retention rates continue to benefit the Alpha Omega Rate Renewal Option Program, which was implemented last year. This program rewards good risks through opportunities to reduce renewal premiums. INCURRED LOSS RATIO LOWER FOR THE SECOND QUARTER AND FIRST HALF OF 1992
 Total benefits and claims were $54,085,940 for the six months ended June 30, 1992, versus $47,847,520 last year. Incurred losses as a percent of premiums declined three percentage points for the first half of this year to 66 percent compared to 69 percent in 1991. For the second quarter of 1992, the incurred loss ratio was 66 percent, a reduction of two percentage points over the same period last year. RESERVE AND ACCRUALS FOR FUTURE CLAIMS STRENGTHENED
 The reserve and accruals for future claims was $33,237,028 on June 30, 1992, an increase of 15 percent versus year-end 1991. The reserve and accruals for future claims rose nearly 10 percent or $2.9 million during the second quarter of this year. These actions were taken in response to higher premium volume and to further strengthen the balance sheet. TOTAL INVESTMENTS EXCEED $49.9 MILLION
 Investments increased during the first half of 1992 and totalled $49,922,391 on June 30, 1992. The continued decline in interest rates during the past year reduced the positive impact of additional investment opportunities. This resulted in modest improvement for the second quarter of 1992 compared to a year ago, and slightly lower investment income for the first half of this year. However, the quality remains strong due to the mix of investments in the portfolio and there are no "junk" bonds or commercial real estate loans in the portfolio. SHAREHOLDERS' EQUITY AND CASH DIVIDENDS HIGHER
 Shareholders' equity was $25,031,785 on June 30, 1992. Book value per share increased to $6.29 on June 30, 1992. Earlier this year, the board of directors announced a 13 percent increase in the semi-annual common stock dividend, from 32 to 36 cents.
 Central Reserve Life Corporation is a leading insurer of preferred risk accident and health insurance, 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
 1992 1991
 REVENUES:
 Premiums $42,378,161 $34,950,562
 Investment Income 1,107,911 1,102,160
 Gain (Loss) on Sales of
 Investments 192,814 46,705
 Other Income (10,103) 13,626
 Total $43,668,783 $36,113,053
 Benefits, Losses and Expenses
 Benefits, Claims, Losses and
 Settlement Expenses $28,084,601 $23,711,643
 Commissions 6,530,425 4,933,320
 Other Operating Expenses 8,047,200 6,873,985
 Total $42,662,226 $35,518,948
 Net Income (Loss) Before Federal
 Income Taxes $1,006,557 $ 594,105
 Federal Income Taxes:
 Current 349,382 250,000
 Deferred (240,000) (200,000)
 Net Income $ 897,175 $ 544,105
 Weighted Average Shares
 Outstanding 4,188,861 4,123,231
 Earnings (Loss) Per Share
 Before Federal Income Taxes $.24 $.14
 Federal Income Taxes $.03 $.01
 Net Income $.21 $.13
 Six Months Ended
 June 30
 1992 1991
 REVENUES:
 Premiums $ 81,745,622 $ 68,929,220
 Investment Income 2,162,285 2,288,680
 Gain (Loss) on Sales of
 Investments 159,386 113,403
 Other Income 46,345 26,407
 Total $ 84,113,638 $ 71,357,710
 Benefits, Losses and Expenses
 Benefits, Claims, Losses and
 Settlement Expenses $54,085,940 $47,847,520
 Commissions 12,431,644 9,758,314
 Other Operating Expenses 15,811,422 13,386,049
 Total $ 82,329,006 $ 70,991,883
 Net Income (Loss) Before Federal
 Income Taxes $1,784,632 $ 365,827
 Federal Income Taxes:
 Current 749,382 250,000
 Deferred (440,000) (200,000)
 Net Income (Loss) $1,475,250 $ 315,827
 Weighted Average Shares
 Outstanding 4,176,328 4,117,793
 Earnings Per Share
 Before Federal Income Taxes $.43 $.09
 Federal Income Taxes $.08 $.01
 Net Income $.35 $.08
 -0- 8/10/92
 /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


KK -- CL004 -- 8410 08/10/92 10:08 EDT
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Date:Aug 10, 1992
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