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COMMUNITY MUTUAL ASSIGNED 'A' RATING BY A.M. BEST; COMPANY IS THE ONLY BLUE CROSS AND BLUE SHIELD PLAN IN THE STATE TO ACHIEVE THE RATING

 CINCINNATI, Nov. 9 /PRNewswire/ -- Community Mutual Insurance Company today announced that it has been assigned an A.M. Best Rating of 'A' (Excellent). It is the first time A.M. Best has rated Community Mutual. The company is the only Blue Cross and Blue Shield plan in the state to achieve the rating.
 According to the A.M. Best announcement, the rating reflects "the company's prominent regional position as Ohio's largest health insurer, its conservative management, substantial claims processing capacity and the strengthened distribution capacity of the organization through its acquisition of Home Life Financial Assurance Corporation, which allows access to the health care marketplace on a nationwide basis."
 A.M. Best also cited Community Mutual's positive earnings performance, favorable capitalization, strong liquidity position and the excellent overall quality of its investment portfolio.
 "An 'A' rating from A.M. Best is further indication of Community Mutual's strengths and supports our commitment to subscribers, both throughout Ohio and nationwide," said William R. Milnes, Jr., Community Mutual executive vice president. "The rating also substantiates our rapid progression toward becoming a strong managed care company."
 Home Life Financial Corporation (HLFAC), a Community Mutual subsidiary, also was assigned an "A" (Excellent) rating by A.M. Best.
 Additionally, the rating stems from Community Mutual's continuing investment in technology to enhance its servicing capabilities. Among examples highlighted by A.M. Best is Community Mutual's alliance with IBM in developing the Managed Care Acceleration Project (MCAP), a system that will allow health care providers immediate access to client medical profiles. MCAP will aid in providing appropriate medical treatment in addition to providing the client with on-line details of policyholder coverages and costs.
 "The 'A' ratings for both Community Mutual and its new subsidiary will be an important signal to potential customers that we are a strong company. Brokers selling our health insurance products use such ratings as a screening process in determining which companies to represent. The rating is a definite competitive advantage," said Milnes.
 THIRD QUARTER PERFORMANCE UP
 Last week, Community Mutual also reported significantly greater consolidated revenues and net income for the first nine months of 1993 when compared to 1992. For the first nine months of 1993, Community Mutual reported $1.6 billion in total revenue. For the period, net income was $51 million. This compares to $1.4 billion in revenue and net income of $29 million during the same period of 1992. At the end of September, Community Mutual also reported policyholder reserves of $382 million.
 Reflected for the first time in Community Mutual's overall financial success is the performance of Home Life Financial Corporation. Community Mutual's subsidiaries, led by HLFAC, represented roughly one- third of the company's total income for the third quarter 1993. HLFAC is licensed to sell health insurance products in 49 states.
 Based in Cincinnati, Community Mutual provides benefits to more than 2 million customers in Ohio and nationwide and is the Medicare Part A administrator for Ohio.
 NOTE: This information is presented using generally accepted accounting principles that will result in different revenue, earnings and policyholder surplus than are reported to the Ohio Department of Insurance based on statutory accounting principles.
 -0- 11/9/93
 /CONTACT: Lora Peters, 513-872-8192, or Erik Kirkhorn, 513-872-8469, both of Community Mutual/


CO: Community Mutual Insurance Company ST: Ohio IN: INS SU:

KL-BM -- CL012 -- 2143 11/09/93 09:42 EST
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Publication:PR Newswire
Date:Nov 9, 1993
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