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CENTRAL RESERVE REPORTS SOLID FOURTH QUARTER RESULTS: CLOSES 1991 WITH STRONG PERFORMANCE

TO
 CENTRAL RESERVE REPORTS SOLID FOURTH QUARTER RESULTS;
 CLOSES 1991 WITH STRONG PERFORMANCE
 STRONGSVILLE, Ohio, Feb. 27 /PRNewswire/ -- Central Reserve Life Corporation (NASDAQ/NMS: CRLC) today reported strong results for the three months ending Dec. 31, 1991, exceeding last year's solid fourth quarter performance. Premiums reached an all-time high, while earnings for the most recent three-month period represent the highest quarterly results since 1984. Revenues increased eight percent for the three months ended Dec. 31, 1991, and net income was $1,679,494, or 41 cents per share. For the same period a year ago, revenues totalled $36,567,119, while net income was $1,627,515 and earnings per share were 40 cents.
 Results for the full year 1991 benefited from strong second half performance. Total revenues were $147,012,227 for 1991 compared to $141,446,455 a year ago. Net income decreased 14 percent to $3,371,913 versus $3,920,749 in 1990. On an earnings per share basis, these results represent 82 cents per share for 1991 and 96 cents for 1990.
 Fred Lick, Jr., chairman, commented, "Central Reserve completed 1991 with increased quarterly results during the year when four separate offices were consolidated into a new headquarters building in the midst of a weak economy. We are particularly pleased with the growth in the number of certificates in force, fewer lapsed certificates during 1991, and improvement in the paid claims ratio. As a result of controls which were refined in 1991, we are in a strong position to realize additional growth and profitability in the years ahead."
 Fourth Quarter Revenues Increased 8 Percent
 Total revenues increased 8 percent, to $38,296,548, for the three months ended Dec. 31, 1991. Premiums grew from $34,447,598 for the fourth quarter of 1990 to $37,217,472 for the same period this year. Despite continued impact due to medical inflation, benefits and claims were $23,539,501 versus $21,808,490 for the comparable quarter in 1990.
 Group Certificates in Force Total 78,875 at Year-end
 CRL's Eagle Plan, designed for the individual, as well as the Gemini Plan, for employers with 15 or more employees, represented the largest number of new certificates issued. Total group certificates in force rose 5 percent to 78,875 as of Dec. 31, 1991, compared to 74,089 for the same date in 1990. The retention of existing business improved during the past year as a result of the Alpha Omega Rate Renewal Option Program and is expected to have a larger impact in the future.
 Incurred Loss Ratio Reduced
 The claims inventory position was significantly reduced during the first quarter of 1991. Total benefits and claims were $95,172,235 for 1991 versus $92,319,928 for 1990. Incurred losses as a percent of premiums were 67 percent for 1991, down from 68 percent the previous year. The reduced backlog, combined with implementation of the Verification Application Program, enabled Central Reserve to lower its reserves and accruals for future claim payments to $28,931,749 as of Dec. 31, 1991, a reduction of 8 percent.
 Investment Portfolio Remains Strong
 Total investments of $44,645,676 at Dec. 31, 1991, includes $43,541,155 in bonds of which 99.5 percent are of investment grade quality. The average yield on investments was 8.7 percent in 1991 compared to 9.3 percent in 1990. These results were impacted by generally lower interest rates throughout the year and reduced cash flow during the first half of 1991. More than 97 percent of Central Reserve's investments were in fixed maturities at Dec. 31, 1991.
 Shareholders' Equity Grew 10 Percent to $24,242,208 in 1991
 Shareholders' Equity was $24,242,208 on Dec. 31, 1991, compared to $21,938,151 on the same date in 1990. Book value per share rose $6.11 at year-end 1991 compared to $5.55 the previous year. The return on beginning shareholders' equity was 15.4 percent for 1991, versus 20.1 percent for 1990.
 Income Taxes Significantly Higher in 1991
 Current taxes due rose to 63 percent of pre-tax income in 1991 versus 38 percent the previous year. This increase was attributable to the Revenue Reconciliation Act of 1990. The act requires insurers to capitalize and amortize policy acquisition costs, according to specific percentages of net premiums received during the year on various categories of insurance contracts.
 Central Reserve Life Corporation is a leading insurer of preferred risk accident and health insurance, specializing in groups of less than 50 employees. Based in Strongsville, Ohio, the company is currently active in 18 of the 36 states in which it is admitted to sell insurance.
 CENTRAL RESERVE LIFE CORPORATION
 AND SUBSIDIARIES
 CONSOLIDATED CONDENSED STATEMENT OF INCOME
 (UNAUDITED)
 Three Months Ended
 December 31
 1991 1990
 Revenues:
 Premiums $37,217,472 $34,447,598
 Investment income 1,103,189 1,111,180
 Gain (loss) on sales of investments (28,445) (4,815)
 Other income 4,332 13,156
 Total $38,296,548 $35,567,119
 Benefits, Losses, and Expenses:
 Benefits, claims, losses and
 settlement expenses 23,539,501 21,808,490
 Commissions 5,305,269 4,763,863
 Other operating
 Expenses 7,243,675 6,786,803
 Total $36,088,445 $33,359,156
 Net income before Fed. income taxes 2,208,103 2,207,963
 Fed. Income Taxes:
 Current 1,326,609 1,383,448
 Deferred (798,000) (803,000)
 Net income $1,679,494 $1,627,515
 Weighted average shares outstanding 4,112,345 4,071,771
 Earnings per share
 Before Fed. income taxes $.54 $.55
 Fed. income taxes .13 .15
 Net income $.41 $.40
 Twelve Months Ended
 December 31
 1991 1990
 Revenues:
 Premiums $142,332,606 $136,597,784
 Investment income 4,481,145 4,472,649
 Gain (loss) on sales of investments 165,416 345,925
 Other income 33,060 30,097
 Total $147,012,227 $141,446,455
 Benefits, Losses, and Expenses:
 Benefits, claims, losses and
 settlement expenses 95,172,235 92,319,928
 Commissions 20,361,254 19,900,135
 Other operating
 Expenses 27,261,216 24,225,195
 Total $142,794,705 $136,445,258
 Net income before Fed. income taxes 4,217,522 5,001,197
 Fed. Income Taxes:
 Current 2,643,609 1,883,448
 Deferred (1,798,000) (803,000)
 Net income $3,371,913 $3,920,749
 Weighted average shares outstanding 4,108,050 4,069,314
 Earnings per share
 Before Fed. income taxes $1.03 $1.23
 Fed. income taxes .21 .27
 Net income $.82 $.96
 -0- 2/27/92
 /CONTACT; Frank W. Grimone of Central Reserve Life, 216-572-2400, or Robert A. Lentz of Robert A. Lentz and Associates, Inc., 614-228- 2142, for Central Reserve Life/
 (CRLC) CO: Central Reserve Life Corporation ST: Ohio IN: INS SU: ERN


CG -- CL006 -- 3227 02/27/92 11:33 EST
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Date:Feb 27, 1992
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