UNITED WISCONSIN SERVICES REPORTS HIGHER EARNINGS
UNITED WISCONSIN SERVICES REPORTS HIGHER EARNINGS MILWAUKEE, Oct. 28 /PRNewswire/ -- United Wisconsin Services, Inc.
(NASDAQ: UWSI) today announced earnings for the nine month period ended Sept. 30, 1992 which represent a 120 percent increase over the same period last year. The company also reported third quarter earnings which were 86 percent higher than earnings for the same period in 1991.
"Consistency, diversity and change characterize United Wisconsin
Services, Inc." noted Thomas R. Hefty, chairman, president and chief executive officer of UWSI. "Each of our three major business units achieved revenue growth in excess of 20 percent and earnings growth in excess of 60 percent for the nine months ended Sept. 30, 1992." According to Hefty, "Beyond the strong results posted by our business units, UWSI benefits from the diversity of these companies. Diversity is important to us as we continue to position UWSI for the future of health care in America and align our corporate structure to respond to changes in the legislative environment. Change is coming. It may not occur right at the outset of the next presidential term, but it is an issue high on our nation's agenda. Therefore, we can expect to see a great deal of activity in the legislative and regulatory arenas. Our managed care expertise and our diversity puts us in fields that we expect will profit from change."
UWSI reported earnings of $18.8 million, or $1.70 per share, for the nine months ended Sept. 30, 1992. These earnings reflect a 120 percent increase over last year's earnings for the same period of $8.5 million, or $.94 per share. 1992 year-to-date revenue totalled $308.6 million, or 29 percent over last year's revenue of $238.3 million for the same period. For the third quarter of 1992, UWSI reported earnings of $6.7 million, or $.61 per share, which are 86 percent higher than 1991 third quarter earnings of $3.6 million. Revenues for the quarter increased 32 percent to $107.4 million, compared to $81.5 million for the three months ended Sept. 30, 1991. Following are individual performance figures for UWSI's subsidiaries and joint venture relationships. HMO OPERATIONS HMO Operations continued to experience strong earnings growth for the third quarter of 1992, reporting a 101 percent increase in quarterly earnings over the same period last year. Earnings growth for the quarter, and year-to-date, is primarily attributable to an increase in earned fees and improvements in operating expense and claims ratios. In addition, the results for the first nine months of 1992 include Midelfort Health Plan which was acquired effective Jan. 1, 1992. HMO Operations reported growth in third quarter earnings from $1.2 million in 1991, to $2.4 million in 1992. Earned fees for the same period grew 23 percent from $50.7 million in 1991 to $62.5 million in 1992. For the nine months ended Sept. 30, 1992, HMO Operations earnings increased 97 percent to $6.4 million from $3.2 million for the same period in 1991. Earned premiums grew 23 percent from $151 million for the first three quarters of 1991 to $186 million for the first three quarters of 1992. AMERICAN MEDICAL SECURITY American Medical Security, Inc. (AMS), a UWSI joint venture, also reported 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 grew 56 percent from $1.8 million in 1991 to $2.8 million in 1992. Year-to-date earnings increased 202 percent from $2.9 million in 1991 to $8.8 million in 1992. While continuing to focus on growth in sales, AMS has also been successful at improving claim payment arrangements and improving operating efficiency, which have favorably impacted year-to- date loss ratios and administrative expense ratios. For the third quarter of 1992, UWSI earned premiums attributable to business sold by AMS increased 54 percent from $20.9 million in 1991 to $32.2 million in 1992. Year-to-date, earned premiums have grown 45 percent from $60.1 million in 1991 to $87.1 million in 1992. UNITED WISCONSIN GROUP The United Wisconsin Group (UWG), consisting of the company's life and casualty operations, has shown steady growth for the first three quarters of 1992. For the nine months ended Sept. 30, 1992, UWG's earnings increased 61 percent to $3.6 million from $2.3 million for the same period in 1991. Earned premiums for the first three quarters in 1992 were $18.9 million, or 21 percent ahead of the $15.6 million in earned premiums for the same period in 1991. Third quarter earnings increased 49 percent from $823,000 in 1991 to $1,225,000 in 1992. Earned premiums for the third quarter rose 19 percent over last year, from $5.7 million in 1991 to $6.7 million in 1992. OTHER OPERATIONS UWSI's other operations, which include Proservices, Take Control, Meridian and United Heartland, posted third quarter earnings of $54,000 on revenues of $1,750,000. For the first nine months of 1992, earnings were $148,000, a 66 percent decrease over the same period in 1991. Revenues for the same period were $4.9 million, a 46 percent increase over the first nine months of 1991. Year-to-date results for these operations reflect start-up costs for Meridian Resource Corporation, a health care and benefits consulting company established in January, 1992. 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 share and per share data) (Unaudited) Three months ended Nine months ended September 30, September 30, 1992 1991 1992 1991 Revenues: Earned health and disability premiums $96,398 $73,368 $277,387 $215,826 Earned life premiums 4,738 3,776 13,616 10,860 Net investment income 3,511 2,725 9,816 7,613 Net realized investment gains 1,004 628 2,973 1,175 Other revenue 1,771 972 4,826 2,855 Total revenues 107,422 81,469 308,618 238,329 Expenses: Capitation 29,479 31,964 93,676 96,296 Incurred health and disability claims 48,124 28,271 129,187 84,087 Life insurance benefits 2,746 2,287 7,273 6,237 Total claims and capitation 80,349 62,522 230,136 186,620 Commission expenses 4,625 3,032 12,436 8,622 Administrative expenses 11,414 8,746 33,356 25,177 Premium taxes and other assessments 833 598 2,621 2,076 Interest and profit sharing on joint ventures 1,055 416 2,996 1,369 Dividends on preferred stock of subsidiary 613 612 1,838 1,837 Total expenses 98,889 75,926 283,383 225,701 Income before income tax expense 8,533 5,543 25,235 12,628 Income tax expense 1,792 1,927 6,463 4,114 Net income $6,741 $3,616 $18,772 $8,514 Earnings per common share $0.61 $0.40 $1.70 $0.94 Weighted average common shares 11,069,981 9,000,000 11,069,981 9,000,000 -0- 10/28/92 /CONTACT: Tom Luljak, director, Corporate Communications, 414-226-5756/ (UWSI) CO: United Wisconsin Services, Inc. ST: Wisconsin IN: HEA INS SU: ERN
KH -- MN023 -- 6136 10/28/92 15:06 EST
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|Date:||Oct 28, 1992|
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