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Ceres Reports Lower 4th Quarter Net Income

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NU Online News Service, March 12, 3:13 p.m. – The Ceres Group Inc., Cleveland, is reporting $3.2 million in net income for the fourth quarter of 2001 on $181 million in revenue, compared with $4.1 million net income on $165 million in revenue for the fourth quarter of 2000.

Ceres sells medical insurance and a variety of products aimed at older customers.

The medical insurance unit did worse than expected, because of higher than expected utilization and claims costs, but the senior products unit did better, the company says.

The company suffered no investment losses in 2001 as a result of the collapse of Enron Corp., Houston, or other companies, but it was affected by the Sept. 11, 2001, attack on the World Trade Center in New York. Ceres took a $800,000 charge in the fourth quarter in connection with a collateralized, interest-only lease obligation that was backed by the World Trade Center.