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Technology Stocks : InsWeb Corp-(INSW) -- Ignore unavailable to you. Want to Upgrade?

To: Doug (Htfd,CT) who wrote (101)	1/28/2000 8:34:00 AM
From: AugustWest	Respond to of 116

(COMTEX) B: InsWeb Posts Net Loss, Prepares to Expand Online Services B: InsWeb Posts Net Loss, Prepares to Expand Online Services REDWOOD CITY, Calif., Jan 27, 2000, (A. M. Best via COMTEX) -- InsWeb Corp.'s net losses deepened during the fourth quarter as the company tripled its advertising costs and almost doubled its administrative expenses. However, the company said it remains hopeful that e-commerce will continue to grow, spurred by Allstate Corp.'s commitment to Internet business. InsWeb posted a net loss of $11 million for the last quarter of 1999, or 32 cents a share, compared to a net loss of $10.3 million, or 42 cents a share a year ago. Although revenue increased to $6.4 million from $2 million a year ago, operating losses increased to $12.5 million, from $10.3 million for the fourth quarter of 1998. Most of that loss came from sales and marketing expenses of $11 million and administrative costs of $4.8 million, which far outpaced revenue. InsWeb officials remain hopeful, however. For the first time during the quarter, California residents were able to buy their policies online from InsWeb agents. This quarter, InsWeb plans to launch services that will allow customers to pay for and receive policies online. Also during the quarter, the number of companies offering automobile, term life, homeowners, renters insurance and individual health and other products increased to 49. The company also plans to unveil a small group health product this quarter. The company expects increased interest in the Web because of Allstate's announcement in November that it would develop an Internet distribution system. "We believe Allstate's decision has prompted many of the nation's leading auto carriers to accelerate their Internet strategies," said Hussein Enan, Insweb's chief executive officer. InsWeb said it has also had increased traffic. During the fourth quarter, the company hosted 610,000 shopping sessions, almost three times more than the 163,000 a year ago. Also during the quarter, InsWeb launched the first phase of a new Japanese version called InsWeb Japan K.K., a joint venture with Softbank Finance Corp., Marsh & McLennan Cos. and Microsoft. The venture plans to launch an online marketplace this spring with Sumitomo Marine & Fire, Dai-Tokyo Fire & Marine, Tokio Marine & Fire, Mitsui Marine & Fire, Yasuda Fire & Marine, American Home, and Axa Non-Life (BestWire, Dec. 1, 1999). For the year, InsWeb posted a net loss of $36.2 million, or $1.17 a share, from a net loss of $22.5 million, or 92 cents a share, for 1998. InsWeb trades as INSW on the Nasdaq stock market. Shares were selling Thursday morning at $16.125 a share--up 3.6% from the previous close. The stock's value has dropped considerably since trading at a 52-week high of $44 a share in July. (By Theresa Miller, senior associate editor, BestWeek: millert@ambest.com) Copyright (C) 2000 by A. M. Best Company, Inc. -0- GEOGRAPHY: REDWOOD CITY, Calif. * end of story *