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Ceres Reports Lower Second Quarter Net Income

By Staff Writer

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NU Online News Service, Aug. 14, 2:45 p.m. – Ceres Group Inc., Cleveland, is reporting $711,000 in net income for the second quarter on $156 million in revenue, compared with $4.6 million in net income on $119 million in revenue for the second quarter of 2000.

Ceres had good luck with selling long-term care insurance, Medicare supplement insurance and other products to older customers through its senior products unit, but its major medical insurance operation continues to suffer from a high rate of medical cost inflation, Ceres says.

Ceres hopes to cope by closing two health insurance units, streamlining the remaining health insurance operations, and expanding the senior products unit, the company says.

The health insurance unit is reporting a $2.8 million operating loss for the second quarter on $100 million in revenue, compared with $5 million in operating income on $93 million in revenue for the second quarter of 2000.

The senior products unit is reporting $6.4 million in operating income for the quarter on $56 million in revenue, up from $2.3 million on $26 million in revenue.