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UNICARE FINANCIAL CORP. REPORTS PROFITABLE FIRST QUARTER 1992 RESULTS

UNICARE FINANCIAL CORP. REPORTS PROFITABLE FIRST QUARTER 1992 RESULTS
 IRVINE, Calif., May 4 /PRNewswire/ -- Russell E. Leatherby, chairman and chief executive officer of UniCARE Financial Corp. (NYSE: UFN) reported today the results of operations for the first quarter ended March 31, 1992.
 Total revenues increased 22 percent to $33,583,000 compared to revenues for the comparable first quarter of 1991 of $27,439,000. Net income for the current quarter declined to $914,000 or $.18 per share compared to net income of $2,403,000 or $.44 per share for the 1991 first quarter. The first quarter 1992 includes the cumulative effect of a change in accounting for income taxes of $502,000 or $.10 per share resulting from the early adoption of Financial Accounting Standards Board Statement No. 109, "Accounting for Income Taxes."
 Leatherby said that, "The sluggish California economy continues to impact both premium levels and claims. Our lower results for the quarter reflect the well-publicized problems of the California workers' compensation system; escalating medical costs, rapidly rising litigation expenses including those related to fighting fraud and abuse, significant increases in disability cases and premium rate inadequacy. Given the current environment, we anticipate that 1992 will be a very difficult year for both UniCARE and the workers' compensation insurance industry in California.
 "Long term we view as positive the tremendous amount of legislative activity in Sacramento related to workers' compensation and we remain hopeful that some reforms to the system will be enacted this year," he said.
 Leatherby noted that due to the above mentioned factors the company's combined ratio for the quarter increased to 109.3 percent compared to 99.3 percent for the same quarter last year. The most significant increase to the combined ratio was the loss ratio of 87.2 percent compared to last year's first quarter loss ratio of 78.1 percent.
 "In spite of the difficult quarter the company's balance sheet remains strong with shareholders' equity of $51.8 million or $10.42 per share, invested assets (including cash and cash equivalents) of $180,604,000 or $36.30 per share with substantially all of the portfolio in investment grade securities," said Leatherby.
 UniCARE Financial Corp., through its subsidiary, UniCARE Insurance Co., is engaged in the business of underwriting workers' compensation insurance in California, targeting larger commercial accounts and emphasizing quality service through effective claims administration and loss control consultation.
 UNICARE FINANCIAL CORP.
 Summary of Unaudited Consolidated Financial Results
 (all figures in thousands, except share and per share data)
 Three months ended
 March 31,
 1992 1991
 Premiums earned $30,274 $24,384
 Net investment income 3,296 3,062
 Net realized gain (loss)
 on investments 13 (7)
 Total revenues $33,583 $27,439
 Income before cumulative effect
 of a change in accounting principle $412 $2,403
 Cumulative effect on years
 prior to 1992 of change in
 accounting for income taxes 502 ---
 Net income $914 $2,403
 Per share amounts:
 Income before cumulative effect
 of a change in accounting principle $0.08 $0.44
 Cumulative effect on years prior
 to 1992 of change in accounting
 for income taxes 0.10 ---
 Net income per share $0.18 $0.44
 Weighted average shares outstanding 5,041,575 5,456,433
 March 31,
 1992 1991
 Shareholders' equity $51,868,000 $50,656,000
 Shareholders' equity per share $10.42 $9.28
 Number of common shares outstanding 4,975,938 5,458,764
 Three months ended
 March 31,
 1992 1991
 Combined ratio:
 (GAAP consolidated)
 Expense ratio 15.1 pct 15.0 pct
 Loss ratio 87.2 pct 78.1 pct
 Dividend to policyholders ratio 7.0 pct 6.2 pct
 Combined ratio 109.3 pct 99.3 pct.
 -0- 5/4/92
 /CONTACT: Russell E. Leatherby, chairman of UniCARE Financial Corp., 714-955-2170/
 (UFN) CO: UniCARE Financial Corp. ST: California IN: INS SU: ERN


CH-DM -- LA007 -- 5865 05/04/92 09:10 EDT
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Date:May 4, 1992
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