Looks like CERES is quite committed to HealthAxis.com. Read through to the 2 sections of text that I highlighted and you will see it:
Ceres Group, Inc. Reports Sales of $70 Million for 3rd Quarter; Agent Recruiting Reaches 1,000 Per Month
CLEVELAND, Oct. 13 /PRNewswire/ -- Ceres Group, Inc. (Nasdaq: CERG) today announced sales of $70 million of annualized new premium for the quarter ended September 30, 1999, compared to $16.7 million in the third quarter of 1998.
For the first nine months of 1999, new sales for Ceres Group's insurance subsidiaries increased to $206.9 million of annualized new premium from $46.5 million in the first nine months of 1998.
These increases were due primarily to a larger national agent sales force as a result of new acquisitions, newly initiated marketing programs, and the aggressive release of new products through the Company's various insurance subsidiaries.
"Our new product introductions, combined with our national training seminars, have proven very successful in generating increased sales among our existing agents and also in attracting new agents," said Peter W. Nauert, Chairman of Ceres Group. "As evidence of the impact of the Ceres Group initiatives and our pro-active marketing programs, we are now licensing approximately 1,000 new agents a month. At this rate, we expect to have 55,000 agents licensed to sell our products across the nation by the end of this year."
Key factors in the third-quarter sales increase include:
-- 32,400 insurance applications submitted, up from 6,800 in the third quarter of 1998. For the first nine months, insurance applications submitted increased to 104,000 from 20,000 in 1998. The largest sales increases were in the individual health product line.
-- 8,000 new agents recruited during the first nine months of the year.
-- New product releases at the Company's insurance subsidiaries:
-- Continental General's Senior Power Portfolio, released during the third quarter, features 12 newly approved health, life and annuity products for Americans plus-age-55, including long term care, home health care, extended convalescent care, acute recovery care, Medicare supplement, Medicare Select, wealth accumulation
annuities and senior cancer coverage.
-- Central Reserve Life has released 10 new products during 1999, including new employee benefit plans, two new small group plans, and a series of worksite marketing supplemental plans (critical illness, supplemental life, cancer coverage, disability, dental and accident).
"As we move into the year 2000, we plan to continue enhancing the distribution systems we acquire, emphasizing our cross-selling strategy and package selling strategies throughout our six well-defined marketing channels," Nauert said. "We will also continue to develop the use of Internet technology to assist our agents in their sales, and we will implement marketing alliances to help us further expand our product distribution."
Enhancements to Acquired Distribution Systems
"More important than the number of Ceres agents is the sales productivity we have been able to achieve," Nauert said. "With each company we have acquired, we quickly made improvements in the product lines, agent services and marketing support, which has resulted in increased sales.
"At our initial insurance subsidiary, Central Reserve Life Insurance Company (CRL), we increased sales 36 percent from $46.5 million in annualized new premium in the first nine months of 1998 to $63.3 million in the first nine months of this year," Nauert said. "Further, we have expanded CRL's product line from their three basic products in 1998 to over 12 products today, providing our sales force far greater sales opportunities.
"At Continental General Insurance Company, which we just acquired in February 1999, we are moving along similar lines," Nauert added. "We now are fueling sales productivity increases by rolling out 12 new products, which position Continental General as having the most extensive product line for the Senior market. With these new products, we expect to increase Continental General's sales significantly, and we have set a goal of $125 million in new sales for this subsidiary in the year 2000."
Ceres Group recently announced its agreement to acquire Pyramid Life Insurance Company, which will add 2,500 agents, primarily focused on the senior health and life insurance market. The acquisition, subject to regulatory approvals and other customary terms and conditions, is expected to be completed late this year or in early 2000. At completion, Pyramid will be a wholly-owned subsidiary of Ceres Group.
"This acquisition is an important part of our planned expansion in the senior market," Nauert said. "By expanding Pyramid's product portfolio and agent training in the near future, we expect to be able to substantially increase sales and sales productivity of this agent distribution force."
Cross-Sell Strategy
Ceres Group insurance subsidiaries are also focusing on increasing cross-selling of supplemental products, with particular emphasis on their critical illness and supplemental life insurance products.
"By next year, we expect that both of these supplemental plans should achieve significant market penetration," Nauert said. "This cross-selling program provides increased protection for our insureds, additional commission income for our agents, and higher profit margins for Ceres."
Six Defined Marketing Channels
Within the Company's target markets, Ceres Group has defined six specific marketing channels on which it will focus its sales activities in 2000:
-- Group/individual medical
-- Senior life/health
-- Employer benefits
-- Worksite marketing
-- E-commerce
-- Affinity groups
"Drawing from our past marketing successes at Pioneer Financial Services, we are clearly defining our distribution targets," Nauert said. "By concentrating our efforts in these areas, we will build Ceres Group companies into a marketing powerhouse."
Utilization of Internet Technology
"In addition to our traditional agent distribution systems, which are the heart and driving force of our sales programs, Ceres Group is also establishing our company as a leader in utilizing Internet technology for both direct on-line and agent-assisted on-line sales of insurance products," Nauert said. "Our ability to communicate and administer business over the Internet will become more and more important in the future. That is why we have announced three major Internet initiatives which we believe will have an impact on our business in the year 2000 and beyond."
-- ChannelPoint Insurance Exchange -- This program initially includes on-line premium quoting and comparison to other companies' products.
In the future, it will also be important for lead generation, on-line agent training and direct insurance administration.
-- CeresDirect -- Ceres Group companies will provide on-line access to benefit descriptions, premium quotes and on-line application submission for a number of simplified issue products: Medicare supplement, short- term major medical, excess medical and an individual stand-alone dental plan.
-- HealthAxis.com -- This internet vendor provides direct on-line purchase of an individual major medical product of Ceres Group subsidiary, Provident American Life and Health Insurance Company, expanding distribution to individuals who had not previously been targeted by the
company.
"While some companies in our industry are in the process of or planning to replace their agents with direct on-line access, we believe there will continue to be a strong need for our agents in the sales and service process," said Bruce Henry, Chief Sales Officer of Ceres Group. "We are using Internet technology to help our agents improve their sales results."
New Marketing Alliances
"We are now rolling out a marketing alliance with HealthPlan Services Corporation (NYSE: HPS) to expand distribution of our individual, small group and employer partially self-funded products," Nauert said. "This will increase distribution by about 22,000 agents for our small group and employer partially self-funded medical products. We expect this to be a major success for us in the year 2000, with a goal of $25 million of annualized new premium as we complete our roll-out next year."
Ceres Group is also developing several additional new marketing initiatives which will provide the Company access to affinity group marketing opportunities and additional agent distribution systems.
"As we move forward, we plan to continue expanding opportunities for the agents in our various distribution systems," Nauert said. "Our agents have been and will continue to be the basis for our increasing sales results."
Ceres Group provides a broad spectrum of managed care, health insurance and specialty products and services to more than 410,000 medical members. The Company actively distributes its products on a national basis through approximately 50,000 independent licensed sales agents. Products are marketed to individuals, small businesses and the senior market. Through the implementation of cost containment programs and underwriting and product design expertise, it has reduced medical costs and underwriting risks and increased fee-based revenue. For more information, visit www.ceresgroupinc.com .
This news release contains certain forward-looking statements with respect to the financial condition, results of operations and business of the Company. The Company provides no assurance that it will complete the acquisition of Pyramid Life Insurance Company; or, if the acquisition is completed, that it will successfully integrate the operations of Pyramid Life Insurance Company into those of the Company. The Company also provides no assurance that cost savings or additional earnings can be achieved from the acquisition of Pyramid Life Insurance Company. Forward-looking statements are statements other than historical information or statements of current condition. In light of the risks and uncertainties inherent in all future projections, the inclusion of forward-looking statements herein should not be regarded as representation by the Company or any other person that the objectives or plans of the Company will be achieved. Many factors could cause actual results to differ materially from those contemplated by such forward-looking statements, including, among others, failure to successfully implement the business plans for the Company, failure to successfully integrate the business of acquired businesses into the Company, including the failure to achieve cost consolidations, rising healthcare costs, business conditions and competition in the healthcare industry, developments in healthcare reform and other regulatory issues. The foregoing review of important factors should not be construed as exhaustive. Investors and others should refer to Ceres Group filings with the Securities and Exchange Commission, including its annual report on Form 10-K1A for the year ended December 31, 1998, its quarterly reports on Form 10-Q and other periodic filings, for a description of the foregoing and other factors. Ceres Group undertakes no obligation to update forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. For more information about Ceres Group, Inc. Toll-free via fax, dial 1-800-PRO-INFO, enter code CERG.
SOURCE Ceres Group, Inc.
CO: Ceres Group, Inc.; Health Plan Services Corp.
ST: Ohio
IN: CPR MLM
SU: SLS JVN
10/13/1999 17:00 EDT prnewswire.com |
