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CENTRAL RESERVE LIFE REPORTS SIGNIFICANTLY HIGHER FIRST QUARTER EARNINGS; 16 PERCENT INCREASE IN PREMIUMS

 CENTRAL RESERVE LIFE REPORTS SIGNIFICANTLY HIGHER FIRST
 QUARTER EARNINGS; 16 PERCENT INCREASE IN PREMIUMS
 STRONGSVILLE, Ohio, May 11 /PRNewswire/ -- Central Reserve Life Corporation (NASDAQ/NMS: CRLC) today announced net income of $578,075 for the three months ended March 31, 1992, compared to a loss of $228,278 last year. Net income per share was 14 cents for the first quarter of 1992, versus a net loss of 6 cents per share in 1991.
 Premiums rose 16 percent to $39,367,461, bolstered by higher sales of the Eagle and Gemini products, which are designed for individuals and groups of 15-50 employees, respectively.
 Fred Lick, chairman, commented, "The first quarter results reflect initial benefits of strategic initiatives implemented last year to further improve Central Reserve's long-term performance. Three key control programs, which were strengthened in 1991, contributed to the most recent quarter's positive results. First, the Verification Application Program, designed to reduce customer misunderstandings and fraud, is resulting in improved quality of business. Second, the Alpha Omega Rate Renewal Option Program, which rewards good risks through opportunities to favorably reduce their renewal premiums, has resulted in an improved persistency rate (retention of business) and a lower number of lapsed certificates. Finally, Central Reserve's approach to managed Health Care continues to provide substantial savings through targeted efforts to control costs."
 Record Number of Certificates in Force: 83,786
 During the first three months of 1992, there was a net increase of 4,911 certificates in force, resulting in a total of 83,786 certificates on March 31, 1992. This compares with 78,875 as of Dec. 31, 1991, and 73,451 one year ago. A total of 9,565 certificates were issued during the first quarter of this year versus 5,432 for the same period in 1991. Most important, the number of lapsed certificates improved dramatically during the first three months of 1992, totaling 4,654, versus 6,070 last year.
 Incurred Loss Ratio 66 Percent Versus 71 Percent Last Year
 Total benefits and claims were $26,001,339 for the first three months of 1992, compared to $24,135,877 a year ago. Incurred losses as a percent of premiums were five percentage points lower for the first quarter of 1992, representing 66 percent of premiums versus 71 percent of premiums in 1991. The reserve and accruals for future claims rose nearly 5 percent for the three months ended March 31, 1992, compared to the same period last year. At quarter-end, the reserve totaled $30.3 million versus $28.9 million at year-end 1991. This increase was the direct result of significant growth in premiums.
 Investment Portfolio Yields Lower: Quality Remains Strong
 Total investments of $45,440,723 generated $1,054,374 of investment income for the first three months of 1992. While the invested funds were up slightly from a year ago, the average yield was 8.4 percent for the first quarter of this year, compared to 9.4 percent a year ago. On March 31, 1992, 100 percent of the investments were in fixed income securities. There are no "junk bonds" or commercial real estate loans in the portfolio.
 Shareholders' Equity Up 14 Percent During Last 12 Months
 Shareholders' Equity was $24,829,284 on March 31, 1992, compared to $21,718,282 on the same date in 1991. Book value per share rose to $6.25 on March 31, 1992. During the first quarter of 1992, the board of directors announced a 13 percent increase in the annual common stock dividend, from 32 to 36 cents per share.
 Central Reserve Life Corporation is a leading insurer of preferred risk accident and health insurance, specializing in groups of fewer than 50 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
 March 31 March 31
 1992 1991
 REVENUES:
 Premiums $39,367,461 $33,978,658
 Investment Income 1,054,374 1,186,520
 Gain on Sales of Investments (33,428) 66,698
 Other Income 56,448 12,781
 Total $40,444,855 $35,244,657
 Benefits, Losses and Expenses
 Benefits, Claims, Losses and
 Settlement Expenses $26,001,339 $24,135,877
 Commissions 5,901,219 4,824,994
 Other Operating Expenses 7,764,222 6,512,064
 Total $39,666,780 $35,472,935
 Net Income (loss) Before Federal
 Income Taxes $ 778,075 $ (228,278)
 Federal Income Taxes:
 Current 400,000 ---
 Deferred (200,000) ---
 Net Income (loss) $ 578,075 $ (228,278)
 Weighted Average Shares
 Outstanding 4,140,206 4,113,021
 Earnings (loss) Per Share
 Before Federal Income Taxes $.19 $(.06)
 Federal Income Taxes $.05 ---
 Net Income (loss) $.14 $(.06)
 -0- 5/11/92
 /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 -- CL005 -- 8508 05/11/92 10:11 EDT
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Date:May 11, 1992
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