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UNITED WISCONSIN SERVICES REPORTS RECORD EARNINGS FOR 1991

 UNITED WISCONSIN SERVICES REPORTS RECORD EARNINGS FOR 1991
 MILWAUKEE, Wis., Feb. 11 /PRNewswire/ -- United Wisconsin Services, Inc. (NASDAQ: UWSI) today announced record earnings for the year ended Dec. 31, 1991, which are 58 percent higher than the same period last year. The company also reported earnings for the fourth quarter ended Dec. 31, 1991 which are 39 percent higher than the same period in 1990.
 In announcing these record earnings, Thomas R. Hefty, chairman, president & chief executive officer of United Wisconsin Services, Inc. attributed the company's success to its balance of managed care and specialty insurance products.
 "Our ability to offer employers managed care services enhances our position in today's marketplace," said Hefty. "We know that managed care will play a significant role in any effort to control national health care costs. We plan to be a part of that national solution by continuing to grow and develop our managed care businesses."
 Hefty also said that the company will continue to develop special insurance markets by offering innovative products in group life, vision, disability and worker's compensation. "We know that by balancing managed care with our specialty products we are building a strong financial base that will give us opportunities for future growth."
 UWSI reported 1991 year-end earnings of $13.2 million, or $2.12 per share. These earnings reflect a 58 percent increase over 1990's earnings of $8.4 million, or $1.40 per share. Revenues for the year ended Dec. 31, 1991, totalled $322 million, or 13 percent over 1990's revenues of $286 million. For the fourth quarter ended Dec. 31, 1991, UWSI reported earnings of $4.7 million, or $0.68 per share, 39 percent ahead of 1990's fourth quarter earnings of $3.4 million. Revenues for the quarter were $85.1 million, which were slightly below 1990's fourth quarter revenues of $86.6 million which included $11.6 million of revenue relating to a non-recurring reinsurance transaction.
 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 fourth quarter, reporting a 31 percent increase in quarterly earnings over the same period last year. Earnings growth for the quarter, and the year, is attributed to both an increase in earned fees and an improvement in operating efficiencies.
 "Compcare has benefitted from the consolidation of the HMO marketplace in Wisconsin. New products that appeal to smaller employers and increased operating efficiencies give Compcare a competitive edge," said Hefty.
 Compcare reported growth in fourth quarter earnings from $997,000 in 1990 to $1,311,000 in 1991. Earned fees for the same period grew from $46.1 million in 1990 to $51.1 million in 1991, for an increase of 11 percent.
 For the year ended Dec. 31, 1991, Compcare's earnings of $4.6 million are 61 percent ahead of the $2.8 million in earnings for the same period in 1990. Earned fees grew from $178 million in 1990 to $202 million in 1991, for a 13 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 subsidiaries to small employer groups.
 UWSI fourth quarter earnings attributable to business sold by AMS grew from $1.7 million in 1990 to $2.5 million in 1991. For the year ended Dec. 31, 1991, UWSI earnings attributable to business sold by AMS experienced an even stronger increase from $2.1 million in 1990 to $5.4 million in 1991. While focusing on growth in sales, AMS has also been successful at identifying underwriting risk and improving its operating efficiency, which has favorably impacted expense and loss ratios.
 For the fourth quarter ended Dec. 31, 1991, UWSI earned premiums attributable to business sold by AMS have decreased 29 percent from $32.9 million in 1990 to $23.4 million in 1991. The decrease is attributable to $11.6 million of premium relating to a non-reccuring reinsurance transaction in the fourth quarter of 1990. For the year ended Dec. 31, 1991, UWSI earned premiums grew 5 percent from $79.6 million in 1990 to $83.5 million in 1991. Gross earned premiums, before reinsurance, on business sold by AMS grew 51 percent from $136.8 million in 1990 to $206.7 million in 1991. The company reduced the percentage of the medical premiums it retains from 50 percent in 1990 to 40 percent in 1991. UNITED WISCONSIN GROUP
 The United Wisconsin Group (UWG), consisting of the Company's life and casualty operations, reported relatively stable earnings for 1991. For the year ended Dec. 31, 1991, UWG's earnings of $3.0 million are slightly above the $2.9 million in earnings for the same period in 1990. Premiums for the year ended Dec. 31, 1991 are $21.4 million, 17 percent ahead of the $18.2 million in premiums for the same period in 1990.
 Fourth quarter earnings increased from $506,000 in 1990 to $707,000 in 1991. Premiums for the quarter rose 10 percent over last year, from $5.3 million in 1990 to $5.8 million in 1991. PROSERVICES AND TAKE CONTROL
 Two other subsidiaries, Proservices and Take Control, posted earnings for the year ended Dec. 31, 1991, of $678,000, a 31 percent increase over the same period in 1990. Revenues for the same period were $4.7 million, a 43 percent increase over 1990.
 United Wisconsin Services, Inc., a publicly held 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 with American Medical Security, Inc., which markets and administers, on behalf of UWSI subsidiaries, low cost health insurance to employers with typically 25 or fewer employees. To complement its health insurance products, 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
 For the years ended December 31, 1991 and 1990
 (In thousands, except share and per share data)
 1991 1990
 Revenues:
 Earned health and disability premiums $291,022 $262,385
 Earned life premiums 15,829 13,381
 Net investment income 9,094 7,146
 Net realized investment gains (losses) 2,238 (199)
 Other revenue 4,046 3,047
 Total revenues 322,229 285,760
 Expenses:
 Capitation 127,649 119,300
 Incurred health and disability claims 112,959 101,552
 Life insurance benefits 8,940 7,987
 Total claims and capitation 249,548 228,839
 Commission expenses 11,910 9,795
 Administrative expenses 34,673 30,382
 Premium taxes and other assessments 3,016 2,445
 Dividends on preferred
 stock of subsidiary 2,449 2,245
 Total expenses 301,596 273,706
 Income before income tax expense 20,633 12,054
 Income tax expense 7,414 3,668
 Net income $13,219 $8,386
 Earnings per common share $2.12 $1.40
 Weighted average common shares 6,234,411 6,000,000
 UNITED WISCONSIN SERVICES, INC.
 CONSOLIDATED STATEMENTS OF OPERATIONS
 For the quarters ended December 31, 1991 and 1990
 (In thousands, except share and per share data)
 1991 1990
 Revenues:
 Earned health and disability premiums $75,196 $80,290
 Earned life premiums 4,969 3,826
 Net investment income 2,850 1,506
 Net realized investment gains (losses) 1,063 (1)
 Other revenue 1,023 975
 Total revenues 85,101 86,596
 Expenses:
 Capitation 31,353 30,441
 Incurred health and disability claims 28,872 37,059
 Life insurance benefits 2,703 1,514
 Total claims and capitation 62,928 69,014
 Commission expenses 3,288 3,072
 Administrative expenses 9,328 8,329
 Premium taxes and other assessments 940 833
 Dividends on preferred stock of subsidiary 612 612
 Total expenses 77,096 81,860
 Income before income tax expense 8,005 4,736
 Income tax expense 3,300 1,346
 Net income $4,705 $3,390
 Earnings per common share $0.68 $0.57
 Weighted average common shares 6,930,000 6,000,000
 -0- 2/11/92
 /CONTACT: Kathryn B. Holaday, 414-226-5756 or Gail Hanson, 414-226-6201, both of United Wisconsin Services/
 (UWSI) CO: United Wisconsin Services ST: Wisconsin IN: HEA SU: ERN


DS -- MN018 -- 8925 02/11/92 15:47 EST
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