NU Online News Service, Nov. 12, 8:13 a.m. – The Ceres Group Inc., Cleveland, is reporting $7.3 million in net income for the third quarter on $176 million in revenue, compared with $5.6 million in net income on $185 million in revenue for the third quarter of 2001.
The company’s senior segment, which sells Medicare supplement insurance, long-term care insurance, dental insurance, life insurance and annuities, generated $9.3 million in pre-tax income for the quarter on $66 million in net premium revenue, up from $9 million in pre-tax income on $59 million in net premium revenue for the comparable quarter in 2001.
The medical segment, which sells comprehensive major medical plans and high-deductible plans, generated $2.7 million in pre-tax income for the quarter on $92 million in net premium revenue, up from a pre-tax profit of $1.4 million on $104 million in net premium revenue.
Ceres has emphasized efforts in recent quarters to get out of heavily regulated, unprofitable major medical markets and focus on those where it can earn a profit. The medical segment’s claims ratio fell to 73.1% during the latest quarter, from 76.3% for the third quarter of 2001.