NU Online News Service, Feb. 21, 9:57 a.m. – Universal American Financial Corp., Rye Brook, N.Y., is reporting $11 million in net income for the fourth quarter of 2002 on $88 million in revenue, up from $8.9 million in net income on $75 million in revenue for the fourth quarter of 2001.
Universal American sells insurance products designed for older consumers and administrative services for other companies’ long-term care and Medicare supplement insurance plans.
Revenue from senior market brokerage operations increased 38%, to $45 million, in part because of reduced use of reinsurance, but Universal American notes that new sales of Medicare supplement insurance slowed slightly.
Medicare supplement insurers have benefited from many insurers’ moves to retreat from the Medicare health maintenance organization market. This year, the shrinkage of the Medicare HMO program slowed, and that affected Medicare supplement sales, Universal American says.
Operating income at CHCS Services Inc., the administrative services unit, increased to $2.1 million, from $1.9 million.