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UNITED WISCONSIN SERVICES REPORTS RECORD EARNINGS

 UNITED WISCONSIN SERVICES REPORTS RECORD EARNINGS
 MILWAUKEE, Wis., April 29 /PRNewswire/ -- Continuing a trend of


improving earnings begun in 1987, United Wisconsin Services, Inc. (NASDAQ: UWSI) today announced earnings of $5.2 million for the three month period ended March 31, 1992 which are 171 percent ahead of the same period last year. The Company also reported first quarter revenues that are 20 percent higher than the same period in 1991.
 According to Thomas R. Hefty, President and Chief Executive Officer, the Company's strategy of combining managed care and solid traditional underwriting is paying off. "Each of our major business units achieved an increase in earnings," said Hefty. "However the first quarter's underwriting gains are extraordinary. They reflect what we believe is only a temporary drop in the rate of health care inflation. In addition, favorable market conditions resulted in a significant increase in net realized investment gains."
 Hefty cautioned that the favorable levels of health care inflation and net realized investment gains should not necessarily be expected to continue. However, current conditions would suggest that the Company's performance will remain strong for the remainder of 1992.
 UWSI reported 1992 first quarter earnings of $5.2 million, or $0.71 per share. These earnings reflect a 171 percent increase over 1991's earnings for the same period of $1.9 million, or $0.32 per share. Excluding net realized investment gains, earnings increased from $0.30 per share in 1991 to $0.59 in 1992, a 97 percent increase. First quarter 1992 revenues totaled $99.1 million, or 20 percent over last year's revenues of $82.5 million for the same period.
 Following are individual performance figures for UWSI's subsidiaries and joint venture relationship. HMO OPERATIONS
 Total HMO Operations continued to experience strong earnings growth for the first quarter, reporting a 103 percent increase in quarterly earnings over the same period last year. Earnings growth for the quarter is attributed to an improvement in both loss and expense ratios at Compcare. In addition, these results for the first quarter include Midelfort Health Plan which was acquired effective January 1, 1992.
 First quarter earnings on the HMO Operations increased from $774,000 in 1991, to $1,571,000 in 1992. Earned fees for the same period grew from $50.5 million in 1991 to $62.1 million in 1992, an increase of 23 percent. Approximately 50 percent of this increase is due to the acquisition of the Midelfort Health Plan.
 "We are very pleased with our partnership with Midelfort and the opportunity it gives us to offer quality managed care in western Wisconsin. While others are leaving markets in the state, UWSI is expanding," said Hefty. AMERICAN MEDICAL SECURITY
 UWSI's joint venture with American Medical Security, Inc. (AMS), continues to report strong results. AMS primarily markets and administers low cost, no-frills health insurance products on behalf of UWSI to small employer groups.
 UWSI first quarter earnings attributable to business sold by AMS have grown from $364,000 in 1991 to $2,599,000 in 1992. "AMS' management continues its track record of successfully marketing and underwriting in the small employer, employee benefit market," said Hefty.
 For the quarter, UWSI premiums attributable to business sold by AMS increased 6 percent from $24.0 million in 1991 to $25.4 million in 1992. The percentage of AMS' medical premiums retained by the Company was at 50 percent in the first quarter of 1991 compared to 40 percent in the first quarter of 1992. Gross earned premiums, before reinsurance, on business sold by AMS grew 31 percent from $48.1 million in 1991 to $62.8 million in 1992. UNITED WISCONSIN GROUP
 The United Wisconsin Group (UWG), consisting of the Company's life and casualty operations, has shown an increase in earnings for the first three months of 1992. For the first quarter of 1992, UWG's earnings of $1,156,000 are ahead of the $730,000 in earnings for the same period in 1991. Premiums for the first quarter in 1992 were $5.9 million, 21 percent ahead of the $4.8 million in premiums for the same period in 1991. As with UWSI's other subsidiaries, loss ratios showed an improvement over the year ago quarter. OTHER OPERATIONS
 In other operations, UWSI posted a first quarter loss of $42,000 on revenues of $1,475,000, versus a gain of $152,000 on revenues of $1,154,000 in 1991. First quarter results for these operations reflect start-up costs for Meridian Resource Corporation, a health care and benefits consulting company established in January, 1992.
 The revenue increase for the first quarter reflects increased sales for both Take Control, UWSI's subsidiary which provides managed care and utilization review services, and Proservices.
 Premiums managed by the Company's workers' compensation joint venture, United Heartland, increased from $305,000 in 1991 to $8,573,000 in the first quarter of 1992. United Heartland, established January 1, 1991, acts as a managing general agent for workers' compensation and specializes in applying managed care techniques to workers' compensation cases.
 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
 For the three months ended March 31, 1992 and 1991
 (In thousands, except share and per share data)
 1992 1991
 Revenues:
 Earned health and disability premiums $88,869 $75,611
 Earned life premiums 4,223 3,569
 Net investment income 2,999 2,075
 Net realized investment gains 1,619 363
 Other revenue 1,367 874
 Total revenues 99,077 82,492
 Expenses:
 Capitation 33,528 32,221
 Incurred health and disability claims 38,723 31,970
 Life insurance benefits 2,273 2,043
 Total claims and capitation 74,524 66,234
 Commission expenses 3,627 3,299
 Administrative expenses 10,984 8,179
 Premium taxes and other assessments 873 851
 Interest and profit sharing on joint ventures 1,190 386
 Dividends on preferred stock of subsidiary 612 612
 Total expenses 91,810 79,561
 Income before income tax expense 7,267 2,931
 Income tax expense 2,060 1,009
 Net income $5,207 $1,922
 Earnings per common share $0.71 $0.32
 Weighted average common shares 7,380,000 6,000,000
 -0- 4/29/92
 /CONTACT: Gail Hanson of United Wisconsin Services, 414-226-6201/
 (UWSI) CO: United Wisconsin Services, Inc. ST: Minnesota IN: INS SU: ERN


KH -- MN007 -- 4290 04/29/92 10:53 EDT
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