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UNITED WISCONSIN SERVICES REPORTS RECORD EARNINGS FOR 1992

 MILWAUKEE, Feb. 9 /PRNewswire/ -- United Wisconsin Services, Inc. (NASDAQ: UWSI) today announced record earnings for the year ended Dec. 31, 1992, which represented a 96 percent increase over 1991 earnings. The company also reported that earnings for the fourth quarter ended Dec. 31, 1992 were up 51 percent over the same period in 1991.
 In announcing these record earnings, Thomas R. Hefty, chairman, president and chief executive officer of United Wisconsin Services, Inc. attributed the company's success during 1992 to its balance of managed care and specialty insurance products.
 UWSI reported 1992 year-end earnings of $25.9 million, a 96 percent increase over 1991's earnings of $13.2 million. Earnings per share increased 66 percent to $2.34 per share in 1992 from $1.41 per share in 1991. Revenues for the year ended Dec. 31, 1992 totalled $418.8 million, or 29 percent over 1991's revenues of $323.5 million. For the fourth quarter ended Dec. 31, 1992, UWSI reported earnings of $7.1 million, or $0.64 per share, which was 51 percent more than 1991's fourth quarter earnings of $4.7 million. Revenues for the fourth quarter were $110.1 million, which were 29 percent higher than 1991's fourth quarter revenues of $85.2 million.
 Following are individual performance figures for UWSI's subsidiaries and joint venture relationships.
 HMO OPERATIONS
 HMO Operations reported growth in fourth quarter earnings to $2.5 million in 1992 from $1.3 million in 1991. Earned premiums for the same period grew 23 percent to $62.8 million in 1992 from $51.1 million in 1991.
 For the year ended Dec. 31, 1992, HMO Operations earnings increased 94 percent to $8.8 million from $4.6 million for the same period in 1991. Earned premiums grew 23 percent to $248.8 million in 1992 from $202.5 million in 1991.
 In the fourth quarter of 1992, HMO Operations reported an 87 percent increase in earnings over the same period last year. The higher 1992 earnings are attributed to improved internal operating efficiencies as well as strict management of health care costs and continued growth in earned premiums. In addition, the results for 1992 include Valley Health Plan (formerly Midelfort Health Plan) which was acquired effective Jan. 1, 1992.
 AMERICAN MEDICAL SECURITY
 American Medical Security, Inc. (AMS), one of UWSI's joint ventures, also reported strong results. AMS primarily markets and administers low cost health insurance products on behalf of UWSI to small employer groups.
 UWSI fourth quarter earnings attributable to business sold by AMS grew 45 percent to $3.6 million in 1992 from $2.5 million in 1991. Year-to-date earnings increased 130 percent to $12.4 million in 1992 from $5.4 million in 1991. While continuing to focus on growth in sales, AMS also has been successful at expanding PPO relationships and improving operating efficiency, which has favorably impacted year-to- date loss ratios and administrative expense ratios.
 For the fourth quarter of 1992, UWSI earned premiums attributable to business sold by AMS increased 48 percent to $34.7 million in 1992 from $23.4 million in 1991. Year-to-date, earned premiums grew 46 percent to $121.8 million in 1992 from $83.5 million in 1991.
 UNITED WISCONSIN GROUP
 The United Wisconsin Group (UWG), consisting of the company's life and casualty operations, has shown steady growth in 1992. For the fourth quarter of 1992, UWG's earnings increased 72 percent to $5.1 million from $3.0 million for the same period in 1991. Earned premiums in 1992 were $26.5 million, or 24 percent ahead of the $21.4 million in earned premiums in 1991.
 Fourth quarter earnings increased 107 percent to $1.5 million in 1992 from $.7 million in 1991. Earned premiums for the year rose 32 percent over last year, to $7.6 million in 1992 from $5.8 million in 1991.
 OTHER OPERATIONS
 UWSI's other operations posted a fourth quarter loss of $175,000 on revenues of $1,571,000.
 For the year ended Dec. 31, 1992, a loss of $27,000 was recorded compared to income of $489,000 in 1991. Revenues for the same period were $6.5 million, a 44 percent increase over 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.
 United Wisconsin Services, Inc., formerly a wholly owned subsidiary of Blue Cross & Blue Shield United of Wisconsin, is a managed health care company headquartered 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 AMS, 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 offers short-term and long-term disability, vision, life, workers' compensation and other insurance. Through various other subsidiaries, UWSI markets managed care services and other products including 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)
 Three Months Ended 12 Months Ended
 12/31/92 12/31/91 12/31/92 12/31/91
 Revenues:
 Earned health and
 disability premiums $98,966 $75,196 $376,353 $291,022
 Earned life premiums 5,703 4,969 19,319 15,829
 Net investment income 3,614 2,971 13,430 10,584
 Net realized investment
 gains 162 1,063 3,135 2,238
 Other revenue 1,700 997 6,526 3,852
 Total revenues 110,145 85,196 418,763 323,525
 Expenses:
 Capitation 29,308 31,353 122,984 127,649
 Incurred health and
 disability claims 49,080 28,872 178,267 112,959
 Life insurance benefits 3,382 2,703 10,655 8,940
 Total claims and
 capitation 81,770 62,928 311,906 249,548
 Commission expenses 5,123 3,288 17,559 11,910
 Administrative expenses 11,919 9,302 45,275 34,479
 Premium taxes and other
 assessments 582 940 3,203 3,016
 Interest and profit sharing
 on joint ventures 945 121 3,941 1,490
 Dividends on preferred stock
 of subsidiary 611 612 2,449 2,449
 Total expenses 100,950 77,191 384,333 302,892
 Income before income tax
 expense 9,195 8,005 34,430 20,633
 Income tax expense 2,103 3,300 8,566 7,414
 Net income $7,092 $4,705 $25,864 $13,219
 Earnings per common share $.64 $.45 $2.34 $1.41
 Weighted average common
 shares 11,069,981 10,394,987 11,069,981 9,351,613
 -0- 2/9/93
 /CONTACT: Tom Luljak, director, corporate communications for UWSI, 414-226-5756/
 (UWSI)


CO: United Wisconsin Services, Inc. ST: Wisconsin IN: INS SU: ERN

KH -- MN010 -- 4821 02/09/93 16:22 EST
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