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PROVIDENT AMERICAN CORPORATION ANNOUNCES PROFITABLE SECOND QUARTER

 NORRISTOWN, Pa., Aug. 4 /PRNewswire/ -- Provident American Corporation, (NASDAQ: PAMC), an insurance holding company, announced that for the second quarter ended June 30, 1993, it had income from operations of $112,000, or $.01 per share, before preferred dividend requirements, on $18,476,000 of gross revenue compared with a loss of $346,000 or $.05 per share on gross revenue of $19,862,000 for the same period of the prior year.
 For the first half of this year Provident had net income of $148,000, or $.01 per share, before preferred dividend requirements, on $36,241,000 of gross revenue compared with a loss of $1,068,000 or $.14 per share on gross revenue of $38,753,000 a year ago.
 Al Clemens, chairman and CEO, also announced that a new companion product to the funeral insurance policy will be introduced in the third quarter of 1993. "This whole life final expense plan is targeted at a younger senior citizen and is intended to expand Provident's funeral insurance business significantly," he said.
 Mr. Clemens noted that Passages, the established funeral product, has gained its second endorsement from the Pennsylvania Fraternal Order of Police. Last year, The Seniors Coalition, a 1.6 million seniors association, endorsed this product.
 "The mix of our business continues to shift from group medical to life insurance, Mr. Clemens commented. "This trend will continue as we focus more intently on developing our funeral insurance marketing capability by increasing our captive agents, funeral home relationships and association endorsements."
 Mitch Kalish, president, added "We are pleased with the improving trend in operating results. It is important to note that this trend is emerging while we continue to immediately expense all market development and new business acquisition costs."
 Provident American is an insurance holding company selling specialized niche insurance products concentrating on prefunded funeral planning.
 PROVIDENT AMERICAN CORPORATION AND SUBSIDIARIES
 Condensed Consolidated Statements of Operations
 (000s omitted)
 Periods ended Three months Six months
 June 30 1993 1992 1993 1992
 Accident and health
 premiums, gross $13,942 $15,508 $27,669 $30,086
 Life insurance premiums 3,572 3,478 6,615 7,105
 Other revenue 962 876 1,957 1,562
 Total gross revenue 18,476 19,862 36,241 38,753
 Less accident & health
 reinsurance (6,891) (8,313) (13,807) (16,602)
 Total net revenue 11,585 11,549 22,434 22,151
 Expenses 11,462 11,861 22,222 23,152
 Income (loss) before taxes 123 (312) 212 (1,001)
 Tax expense 11 34 64 67
 Net income (loss) 112 (346) 148 (1,068)
 Dividends on preferred stock 64 -- 64 --
 Net income (loss) applicable
 to common stock $ 48 $ (346) $ 84 $(1,068)
 Income (loss) per share $ .01 $ (.05) $ .01 $ (.14)
 -0- 8/4/93
 /CONTACT: Anthony Verdi, chief financial officer of Provident American Corp., 215-279-2500, or Melissa Wilmoth of Cameron Associates, 212-644-9560, for Provident American Corp./
 (PAMC)


CO: Provident American Corporation ST: Pennsylvania IN: INS SU: ERN

SH-OS -- NY073 -- 9493 08/04/93 15:53 EDT
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Publication:PR Newswire
Date:Aug 4, 1993
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