Brief: LV insurer posts 13 percent gain in profit

Tuesday, Nov. 3, 1998 | 2:32 a.m.

Quarterly revenues of $281.1 million jumped 53 percent, mainly because of Sierra's new military health contract on the East Coast. That contract is in jeopardy because of a competitor's challenge.

Sierra also reported growth in its Medicare HMO, workers' compensation and new Houston HMO businesses.

Sierra last week announced plans to acquire Mutual of Omaha's Nevada health insurance operation, and this week completed its acquisition of Kaiser Permanente's Southwest Division in the Dallas area.

Sierra also disclosed it expects its effective tax rate to increase in 1999 and reach the 35 percent level by the year 2000. This is because of reductions in deferred income tax benefits from two mergers and new state taxes Sierra is paying in Maryland.

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