UNITED WISCONSIN SERVICES REPORTS HIGHER, BALANCED EARNINGS
MILWAUKEE, Nov. 4 /PRNewswire/ -- United Wisconsin Services, Inc. (NASDAQ: UWSI), today announced earnings for the nine-month period ended Sept. 30, 1991, which are 70 percent ahead of the same period last year. The company also reported third quarter earnings that are 57 percent higher than the same period in 1990.
"Diversification continues to pay off with earnings and continued growth," noted Thomas R. Hefty, chairman, president, and chief executive officer of UWSI. "Our diversification efforts into several lines of insurance and related services provide us with both stability and added growth opportunities for the future."
UWSI reported 1991 year-to-date earnings of $8.5 million, or $1.42 per share. These earnings reflect a 70 percent increase over last year's earnings for the same period of $5.0 million, or $.83 per share. Year-to-date revenue totalled $237 million, or 19 percent over last year's revenue of $199 million for the same period.
For the third quarter, UWSI reported earnings of $3.6 million, or $.60 per share, 57 percent ahead of 1990 third quarter earnings of $2.3 million. Revenues for the quarter were $81.1 million, 15 percent ahead of 1990's third quarter revenues of $70.8 million.
Following are individual performance figures for UWSI's subsidiaries and joint venture relationship. COMPCARE
UWSI's largest subsidiary, Compcare Health Services Insurance Corporation, continued to experience strong earnings growth for the third quarter, reporting a 52 percent increase in quarterly earnings over the same period last year. Earnings growth for the quarter, and year-to-date, is attributed to both an increase in earned fees and improvements in expense and claims ratios.
Compcare reported growth in third quarter earnings from $772,000 in 1990, to $1,176,000 in 1991. Earned fees for the same period grew from $45.5 million in 1990 to $50.7 million in 1991, an increase of 11 percent.
For the nine months ended Sept. 30, 1991, Compcare's earnings of $3.2 million are 77 percent ahead of the $1.8 million for the same period in 1990. Earned fees have grown from $132 million for the first three quarters of 1990 to $151 million for the first three quarters of 1991, a 15 percent increase. AMERICAN MEDICAL SECURITY
American Medical Security, Inc. (AMS), UWSI's joint venture, continues to report strong results. AMS primarily markets and administers low cost health insurance products on behalf of UWSI to small employer groups.
UWSI third quarter earnings attributable to business sold by AMS have grown from $86,000 in 1990 to $1,778,000 in 1991. Year-to-date earnings have experienced a similar increase from $471,000 in 1990 to $2,903,000 in 1991. While continuing to focus on growth in sales, AMS has also been successful at identifying underwriting risk and improving its operating efficiency, which have favorably impacted expense and loss ratios.
For the quarter, UWSI premiums attributable to business sold by AMS have grown 15 percent from $18.2 million in 1990 to $20.9 million in 1991. Year-to-date, premiums have grown 29 percent from $46.7 million in 1990 to $60.1 million in 1991. UNITED WISCONSIN GROUP
The United Wisconsin Group (UWG), consisting of the company's life and casualty operations, has shown relatively stable earnings for the first nine months of 1991. For the first three quarters of 1991, UWG's earnings of $2.3 million are on pace with the $2.4 million in earnings for the same period in 1990. Premiums for the first three quarters in 1991 are $15.6 million, 21 percent ahead of the $12.9 million in premiums for the same period in 1990.
Third quarter earnings decreased from $1,357,000 in 1990 to $823,000 in 1991. Premiums for the quarter have risen 26 percent over last year, from $4.5 million in 1990 to $5.7 million in 1991.
Lower quarterly performance is due to several one-time factors in the subsidiary's casualty operations. Expense and loss ratios have continued at, or slightly better than, projections for the year. PROSERVICES AND TAKE CONTROL
Two other subsidiaries, Proservices and Take Control, posted third quarter earnings of $206,000 on revenues of $1,181,000. These figures reflect increases of 175 percent in earnings and 53 percent in revenues over the third quarter of 1990.
For the first nine months of 1991, earnings were $598,000, a 131 percent increase over the same period in 1990. Revenues for the same period were $3.5 million, a 56 percent increase over the first nine months of 1990.
United Wisconsin Services, Inc., formerly a wholly owned subsidiary of Blue Cross & Blue Shield United of Wisconsin, is a leading provider of group health insurance and managed health care services, primarily in Wisconsin.
Compcare Health Services Insurance Corporation, a wholly owned subsidiary of United Wisconsin Services, is Wisconsin's largest and oldest health maintenance organization. In addition, UWSI has a joint venture agreement with American Medical Security, Inc., which markets and administers, on behalf of UWSI, low cost health insurance to employers with typically 25 or fewer employees. In addition to health insurance, UWSI, through the United Wisconsin Group, also underwrites and markets long-term and short-term disability, vision, life, workers' compensation and other insurance. Through various other subsidiaries, UWSI also markets managed care services and computer software for electronic claims processing to health care providers.
UNITED WISCONSIN SERVICES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per-share data) (Unaudited)
Nine Months Ended Quarter Ended
9/30/91 9/30/90 9/30/91 9/30/90
Earned health and
disability premiums $215,826 $182,095 $73,368 $64,437
Earned life premiums 10,860 9,555 3,776 3,574
Net investment income 6,244 5,640 2,309 2,138
Net realized investment
gains (losses) 1,175 (198) 628 (15)
Other revenue 3,023 2,072 1,031 706
Total revenues 237,128 199,164 81,112 70,840
Capitation 96,296 88,859 31,964 30,327
Incurred health and
disability claims 84,087 64,493 28,271 23,510
Life insurance benefits 6,237 6,473 2,287 2,397
Total claims and capitation 186,620 159,825 62,522 56,234
Commission expenses 8,622 6,723 3,032 2,548
Administrative expenses 25,345 22,053 8,805 7,517
Premium taxes and
other assessments 2,076 1,612 598 607
Dividends on preferred stock
of subsidiary 1,837 1,633 612 612
Total expenses 224,500 191,846 75,569 67,518
Income before income
tax expense 12,628 7,318 5,543 3,322
Income tax expense 4,114 2,322 1,927 1,022
Net income $8,514 $4,996 $3,616 $2,300
Earnings per common share(a) $1.42 $.83 $.60 $.38
(a) Based upon 6,000,000 weighted average common shares
/CONTACT: Kathryn B. Holaday of United Wisconsin Services, Inc., 414-226-5756/ CO: United Wisconsin Services, Inc. ST: Wisconsin IN: HEA SU: ERN DS-JS -- MN014 -- 0862 11/04/91 16:00 EST