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COTTON STATES LIFE AND HEALTH INSURANCE COMPANY ANNOUNCES 50 PERCENT INCREASE IN SECOND-QUARTER RESULTS

 ATLANTA, Aug. 4 /PRNewswire/ -- Cotton States Life and Health Insurance Company (NASDAQ: CSLH) today reported a 50 percent increase in second-quarter earnings over the same period last year.
 Earnings for the second quarter were $.21 per share, compared to $.14 in 1992. The company also experienced a substantial increase in year-to-date earnings of $.55 per share in 1993, compared to $.42 per share in 1992. The steady increase in the company's year-to-date earnings continues to reflect expense improvements and improved mortality.
 The company's earnings from operations also rose 77 percent and total earnings increased 31 percent over last year. President and CEO J. Ridley Howard said, "Because 1993 earnings don't include any contribution from realized investment gains, they are a true reflection of our improved operations."
 Howard also announced that the board of directors declared a dividend of $.03 per share, payable on Oct. 1, to stockholders of record on Sept. 14.
 Cotton States Life and Health Insurance Company is licensed to sell life insurance in Alabama, Florida, Georgia, Kentucky, Louisiana, Mississippi, North Carolina, South Carolina, Tennessee and Virginia. Its common shares are traded over the counter under the NASDAQ symbol CSLH.
 COTTON STATES LIFE & HEALTH INSURANCE COMPANY
 Unaudited Consolidated Summary of Earnings
 6 months ended 6/30 1993 1992
 Income:
 Premium income $3,850,302 $3,944,557
 Mortality and expense
 charges earned 2,691,134 2,266,576
 Investment income 3,132,012 3,107,319
 Realized invstmt. gains --- 347,320
 Brokerage and other income 367,095 352,677
 Total income 10,040,543 10,018,449
 Benefits and expenses:
 Life benefits and claims 3,579,977 4,026,822
 A&H benefits and claims 1,775,023 1,540,430
 Amortization of policy
 acquisition costs 651,361 693,103
 Operating expenses 2,363,928 2,379,185
 Total benefits and expenses 8,370,289 8,639,540
 Earnings before income tax
 expense and cumulative effect
 of changes in accounting
 principles 1,670,254 1,378,909
 Federal income taxes:
 Current tax expense 270,190 286,000
 Deferred tax expense 18,228 3,000
 Total federal income taxes 288,418 289,000
 Net income before cumulative
 effect of changes in
 accounting principles 1,381,836 1,089,909
 Cumulative effect on prior
 periods of a change in method
 of accounting for income taxes 260,000 ---
 Cumulative effect on prior periods
 of a change in method of
 accounting for retiree benefits,
 net of tax (218,547) ---
 Net earnings $1,423,289 $1,089,909
 Earnings per share of
 common stock $ 0.55 $ 0.42
 Weighted average number of
 shares used in computing
 earnings per share 2,590,925 2,624,168
 3 months ended 6/30 1993 1992
 Income:
 Premium income $1,959,002 $1,742,680
 Mortality and expense
 charges earned 1,407,124 1,075,245
 Investment income 1,544,483 1,614,243
 Realized invstmt. gains --- (2,928)
 Brokerage and other income 192,552 180,904
 Total income 5,103,161 4,610,144
 Benefits and expenses:
 Life benefits and claims 2,004,749 1,878,654
 A&H benefits and claims 912,984 790,251
 Amortization of policy
 acquisition costs 372,555 343,709
 Operating expenses 1,167,736 1,126,902
 Total benefits and expenses 4,458,024 4,139,516
 Earnings before income tax
 expense and cumulative effect
 of changes in accounting
 principles 645,137 470,628
 Federal income taxes:
 Current tax expense 93,182 117,000
 Deferred tax expense 8,544 (9,000)
 Total federal income taxes 101,726 108,000
 Net income before cumulative
 effect of changes in
 accounting principles 543,411 362,628
 Cumulative effect on prior
 periods of a change in method
 of accounting for income taxes --- ---
 Cumulative effect on prior periods
 of a change in method of
 accounting for retiree benefits,
 net of tax --- ---
 Net earnings $ 543,411 $ 362,628
 Earnings per share of
 common stock $ 0.21 $ 0.14
 Weighted average number of
 shares used in computing
 earnings per share 2,590,925 2,624,168
 -0- 8/4/93
 /CONTACT: Gary W. Meader, senior vice president/treasurer, 404-391-8786, or Wendy Chamblee, vice president, corporate communications, 404-391-8903, both of Cotton States/
 (CSLH)


CO: Cotton States Life and Health Insurance Company ST: Georgia IN: INS SU: ERN DIV

BR-BN -- AT010 -- 9457 08/04/93 14:50 EDT
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Publication:PR Newswire
Date:Aug 4, 1993
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