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CENTRAL RESERVE LIFE REPORTS SIGNIFICANTLY HIGHER YEAR-TO-DATE RESULTS AND STRONGER RESERVES IN RESPONSE TO 1992 PREMIUM GROWTH

CENTRAL RESERVE LIFE REPORTS SIGNIFICANTLY HIGHER YEAR-TO-DATE RESULTS
 AND STRONGER RESERVES IN RESPONSE TO 1992 PREMIUM GROWTH
 STRONGSVILLE, Ohio, Nov. 9 /PRNewswire/ -- Central Reserve Life Corporation (NASDAQ-NMS: CRLC) today announced net income of $2,721,763 for the nine months ended Sept. 30, 1992, compared to $1,692,419 for the same period in 1991. Net income per share rose 58 percent to $.65 for the first nine months of 1992 versus $.41 a year ago. Year-to-date premiums increased 21 percent in 1992 over the previous year and totaled $127,229,166. The incurred loss ratio was 67 percent for the first nine months of 1992, a decrease from 68 percent for the same period last year.
 For the three months ended Sept. 30, 1992, net income was $1,246,513 compared to $1,376,592 in 1991. Third quarter earnings per share totaled $.30 versus $.34 a year ago. Several factors influenced this year's third quarter results. First, the company made a net addition of more than $2.4 million to its reserves (Future Policy Benefits, Losses and Claims) to further strengthen future performance. Second, premiums rose 26 percent for the three months ended Sept. 30, 1992, totaling $45,483,544. Specific amounts have been allocated to the reserve and accrual for future claims to prudently manage continued growth.
 Fred Lick, Jr., chairman and chief executive officer, stated, "We are pleased with the results thus far in 1992. The benefits of continued premium growth are being balanced against specific strategies to control the adverse impact of medical inflation. Central Reserve Life's managed care programs, in conjunction with the Verification Application and Alpha Omega Rate Renewal programs, have resulted in a reduction in the claims loss ratio for the nine months ended Sept. 30, 1992, compared to last year. The significant increase in new certificates issued during 1992 combined with a lower policy lapse rate are positive indicators concerning future performance. We remain optimistic about the outlook for the remainder of this year."
 RESERVE AND ACCRUALS FOR FUTURE CLAIMS TOTALS $35,683,440
 The reserve and accruals for future claims increased 23 percent during the first nine months of 1992 and totaled $35,683,440 on Sept. 30, 1992. These actions have been taken in response to the growth in premiums, limited experience concerning recently initiated control programs, and prudent management of the business.
 INCURRED LOSS RATIO LOWER FOR THE FIRST NINE MONTHS OF 1992
 Total benefits and claims were $84,946,773 for the nine months ended Sept. 30, 1992, compared to $71,632,734 last year. Year-to-date incurred losses as a percent of premiums were 67 percent and 68 percent in 1992 and 991, respectively. For the third quarter of 1992, the incurred loss ratio was 68 percent versus 66 percent a year ago.
 NEW CERTIFICATE ISSUED UP SHARPLY, LAPSE RATE DECLINES
 The number of new certificates issued during the first nine months of 1992 totaled 28,552 compared to 17,331 for the same period in 1991. Total lapses continued to decline between the two periods, which contributed to the significant increase in total certificates in force. On Sept. 30, 1992, there were 93,411 certificates in force, a year-to- date increase of 18 percent, which represents a new record for the company.
 TOTAL INVESTMENTS INCREASE TO $54 MILLION
 Total investments have increased approximately 21 percent during the first nine months of this year and totaled $53,998,544 on Sept. 30, 1992. The company's investment strategy remains unchanged and the portfolio is benefiting from a mix of investments which does not include "junk" bonds or commercial real estate loans. Investment income was up 1 percent for the third quarter of 1992, but was 3 percent lower for the year-to-date comparisons. Lower interest rates throughout 1992 continue to impact investment yields and investment income.
 SHAREHOLDERS' EQUITY
 On Sept. 30, 1992, shareholders' equity was $26,323,110 compared to $24,242,208 at year-end 1991. Book value per share rose from $6.11 to $6.59 during this period. Earlier this year, the board of directors announced a 13 percent increase in the semi-annual stock dividend which raised the indicated annual cash dividend to 36 cents. The next semi- annual dividend of $0.18 is expected to be paid on Dec. 15, 1992 to shareholders of record on Nov. 13, 1992.
 CENTRAL RESERVE LIFE CORPORATION
 AND SUBSIDIARIES
 CONSOLIDATED CONDENSED STATEMENT OF INCOME
 (UNAUDITED)
 Three Months Ended
 Sept. 30
 1992 1991
 REVENUES
 Premiums $45,483,544 $36,185,914
 Investment Income 1,104,690 1,089,276
 Gain (Loss) on Sales
 of Investments 130,847 80,458
 Other Income 23,906 2,321
 Total $46,742,987 $37,357,969
 BENEFITS, LOSSES AND EXPENSES
 Benefits, Claims, Losses and
 Settlement Expenses $30,860,833 $23,785,214
 Commissions 6,985,609 5,297,671
 Other Operating Expenses 7,549,414 6,631,492
 Total $45,395,856 $35,714,377
 Net Income (Loss) Before Federal
 Income Taxes $1,347,131 $1,643,592
 Federal Income Taxes:
 Current 650,618 1,067,000
 Deferred (550,000) (800,000)
 Net Income (Loss) $1,246,513 $1,376,592
 Weighted Average Shares
 Outstanding 4,193,867 4,096,837
 Earnings (Loss) Per Share
 Before Federal Income Taxes $.32 $.40
 Federal Income Taxes .02 .06
 Net Income (Loss) $.30 $.34
 Nine Months Ended
 Sept. 30
 1992 1991
 REVENUES
 Premiums $127,229,166 $105,115,134
 Investment Income 3,266,975 3,377,956
 Gain (Loss) on Sales
 of Investments 290,233 193,861
 Other Income 70,251 28,728
 Total $130,856,625 $108,715,679
 BENEFITS, LOSSES AND EXPENSES
 Benefits, Claims, Losses and
 Settlement Expenses $84,946,773 $71,632,734
 Commissions 19,417,253 15,055,985
 Other Operating Expenses 23,360,836 20,017,541
 Total $127,724,862 $106,706,260
 Net Income Before Federal
 Income Taxes $3,131,763 $2,009,419
 Federal Income Taxes:
 Current 1,400,000 1,317,000
 Deferred (990,000) (1,000,000)
 Net Income (Loss) $2,721,763 $1,692,419
 Weighted Average Shares
 Outstanding 4,164,142 4,107,396
 Earnings (Loss) Per Share
 Before Federal Income Taxes $.75 $.49
 Federal Income Taxes .10 .08
 Net Income (Loss) $.65 $.41
 -0- 11/9/92
 /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 -- CL009 -- 8566 11/09/92 09:30 EST
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Date:Nov 9, 1992
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