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Quotesmith Reports Smaller Second Quarter Net Loss

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NU Online News Service, July 26, 2:45 p.m. – Inc., Darien, Ill., a Web-based insurance broker, is reporting a net loss of $2.6 million for the second quarter on $2.1 million in revenue, compared with a $3.6 million net loss on $4.9 million in revenue for the second quarter of 2000.

The operating loss, which excludes $300,000 in interest income, decreased to $2.9 million, from $4.2 million.

The number of policies sold through the site fell to 5,314 for the quarter, down from 12,148 for the second quarter of 2000. But Quotesmith says it also cut marketing costs to $466 per policy sold, from $746 a year ago.

Quotesmith gives quotes for life insurance, long-term care insurance and other products through the Web. Developers are now adding online applications and electronic signature features to the Web site so that customers will have an easier time completing purchases on the Web, the company says.

The company notes that it has $22 million in cash and investments, and only $1.9 million in liabilities.

Quotesmith “believes that its current capital structure, including cash and investments of $21.7 million, is adequate to reach profitability without the necessity of additional debt or equity financing,” the company says.