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PROVIDENT AMERICAN CORPORATION ANNOUNCES THIRD QUARTER RESULTS

    PROVIDENT AMERICAN CORPORATION ANNOUNCES THIRD QUARTER RESULTS
    NORRISTOWN, Pa., Nov. 14 /PRNewswire/ -- Provident American Corporation (NASDAQ: PAMC), an insurance holding company, today announced that for the nine months ended Sept. 30, 1991, it had income from operations of $132,000 or $.02 per share, on $50,049,000 of gross revenue.
    This compares with a loss from operations of $1,725,000 or $.30 per share, on $37,115,000 of gross revenue for the nine months ended Sept. 30, 1990.
    For the three months ended Sept. 30, 1991, Provident had income from operations of $27,000, nil per share, on $19,935,000 of gross revenue compared with a loss of $1,459,000 or $.25 per share, on $12,345,000 of gross revenue for the three months ended Sept. 30, 1990.
    The 1991 operating income results from premium volume growth and favorable loss experience on the special risk lines of business offset by the high costs associated with the development of the pre-need distribution systems and product portfolio, all of which has been charged to current operations and not deferred.
    Pre-need sales for the third quarter of 1991 were $4.9 million of face value compared to $3.2 million and $5.2 million in the first and second quarters, respectively.  Life premium income has reached $11.8 million for the first nine months of 1991 compared to $5.3 million for the same period of 1990.
    Earned premium, before reinsurance, from the special risk health lines has increased to $36.6 million and $14.9 million for the nine and three month periods ended Sept. 30, 1991, respectively, compared to $30.3 million and $9.5 million, respectively, for the same periods of 1990.  However, the new mix of special risk business has produced a loss ratio of 60 percent for 1991 compared to a loss ratio of 92 percent for 1990.
           PROVIDENT AMERICAN CORPORATION AND SUBSIDIARIES
           Condensed Consolidated Statements of Operations
                          (in thousands)
    Periods ended                  Three Months        Nine Months
    Sept. 30                      1991     1990      1991      1990
    Accident and health
     premiums, gross            $14,918   $9,505   $36,561   $30,320
    Life insurance premiums       4,421    2,416    11,815     5,350
    Other revenue                   596      424     1,673     1,445
    Total gross revenue          19,935   12,345    50,049    37,115
    Less accident & health
     reinsurance                (8,495)   (5,750)  (21,240)  (19,000)
    Total net revenue           11,440     6,595    28,809    18,115
    Expenses                    11,388     8,043    28,609    19,801
    Income (loss) before taxes      52    (1,448)      200    (1,686)
    Tax expense                     25        11        68        39
    Net income (loss)               27    (1,459)      132    (1,725)
    Income (loss) per share       $.00     $(.25)     $.02     $(.30)
    /delval/
    -0-                           11/14/91
    /CONTACT:  Anthony R. Verdi, CFO of Provident American Corporation, 215-279-2500/
    (PAMC) CO:  Provident American Corporation ST:  Pennsylvania IN:  INS SU:  ERN KA-SF -- PH007 -- 4353 11/14/91 10:50 EST
COPYRIGHT 1991 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1991 Gale, Cengage Learning. All rights reserved.

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Publication:PR Newswire
Date:Nov 14, 1991
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