NU Online News Service, Feb. 1, 11:07 a.m. – InsWeb Corp., Sacramento, Calif., a Web-based insurance agency, is reporting a $25 million net loss for the fourth quarter of 2001 on $6.3 million in revenue, compared with a $6.7 million net loss on $5.4 million in revenue for the fourth quarter of 2000.
Net results for the latest quarter include $1.9 million in costs related to abandoned office leases and a $18.5 million cut in the value of assets acquired from Intuit Inc., Mountain View, Calif. InsWeb has to include the revaluation of the Intuit assets in its income statement, but the move did not require any cash expenditures.
Excluding the office lease charge and the Intuit asset charge, losses would have fallen to $4.9 million, from $6.7 million, InsWeb says.
InsWeb still has $36 million in cash and short-term investments, but the amount has fallen from $51 million Dec. 31, 2000.
Although revenue from term life sales increased to $1.2 million for the fourth quarter of 2001, from $642,000 from the fourth quarter of 2000, the number of term life carriers selling through InsWeb fell to 12, from 15 in early 2001.
InsWeb hopes to add three more term life carriers, the company says.