NU Online News Service, Nov. 6, 2003, 4:48 p.m. EST – Universal American Financial Corp., Rye Brook, N.Y., says strong results at its career agency and senior products administration unit helped make up for a drop in senior market brokerage profits during the third quarter.
The company is reporting $11 million in net income for the quarter on $141 million in revenue, up from $8 million in net income on $84 million in revenue for the third quarter of 2002.
The acquisition of Pyramid Life from Ceres Group Inc., Cleveland, helped increase career agency revenue 86%, to $74 million, and career agency operating income 59%, to $13 million.
The CHCS Services unit, which administers products such as long term care insurance for other companies, increased revenue 8%, to $12 million, and operating income 53%, to $2.9 million.
At the senior market brokerage unit, which sells Medicare supplement insurance and other products, operating income fell to $3.5 million, from $4.2 million. But Universal American notes that it recently beefed up its senior brokerage capabilities by acquiring the field force of Guarantee Reserve Life Insurance Company, Calumet City, Ill.