The financial data included in the table for the five years ended December 31, 1995 have been derived from financial statements audited by the Company's independent accountants, Deloitte & Touche LLP. This data should be read in conjunction with such financial statements and notes thereto.
Health care revenues increased as a result of sales to new small and mid-size clients, increased revenue from the Company's dental office subsidiary and increased revenue from the Company's indemnity insurance subsidiary. Membership enrollment increased to 761,000 primarily from sales to new small and mid-size group clients and an increase in the number of persons covered under various dental indemnity insurance products offered by the Company's insurance subsidiary.
Health care expenses increased primarily due to increased expenses associated with the opening of new Company-owned dental offices, and increases in capitation payments to participating providers in direct correlation with the increase in premium revenues. Health care expenses, as a percentage of revenues, increased primarily due to the increase costs associated with the expansion of the Company's dental office subsidiary and the increase in payments made to providers of care under the Company's indemnity insurance program, along with an increase in the reserve established for incurred, but not reported claims.
General and administrative expenses remain virtually the same notwithstanding an increase in revenue and the number of persons to whom benefits were provided. Selling expenses increased primarily due to an increase in sales and marketing activities, along with an increase in the number of persons employed by the Company in sales and marketing positions. Selling, general and administrative expenses declined as a percentage of revenue due to increase efficiencies within the Company's administrative operations.
Health care revenues increased as a result of sales to new small and mid-sized clients, increased revenue from the Company's dental office subsidiary, increased revenue from the Company's indemnity insurance subsidiary, and a slowing of layoffs at the Company's major clients in the aerospace, defense and retailing industries. Membership enrollment increased primarily due to sales to new group indemnity clients and an increase in the number of persons covered under indemnity insurance products offered by the Company's indemnity insurance subsidiary. Enrollment increases as a result of sales to new groups offset entirely the continued workforce reduction in a number of the Company's major group clients.
General and administrative expenses remained virtually the same, despite an increase in revenue and the number of persons covered by the Company's benefit programs. Selling expense increased primarily due to an increase in the number of persons directly employed by the Company in sales and marketing positions. It is anticipated that the Company will continue to add additional sales staff during 1994.
The Company's California dental plan contributes substantially all of the Company's operating earnings. Additionally, in 1995, Colorado, Illinois, Kansas, Missouri, Ohio, Oklahoma, Oregon, Texas, and Utah all contributed positively towards operating earnings. Management believes that each state plan is capable of being profitable once targeted enrollment levels are attained and stable provider panels are in place. The Company's dental office subsidiary was a profit contributor in 1995, despite incurring significant expenses, primarily due to the opening of new dental offices. The Company's indemnity insurance subsidiary contributed positively to net income in 1995.
At December 31, 1995 and December 31, 1994, the current ratio was 3.5 to 1.0 and 4.1 to 1.0, respectively. The Company's net worth was $32.0 million compared to $27.5 million the previous year. The Company had $14.7 million and $8.6 million of cash and short-term investments as of December 31, 1995 and December 31, 1994, respectively. As a result of its regulated nature, the Company is required to maintain various regulatory bank accounts in an aggregate amount of approximately $6.5 million to satisfy certain capital and surplus requirements imposed by various regulatory agencies. Due to the significant cash position maintained by the Company, these requirements do not pose a significant financial liquidity burden on the Company. The Company believes that income from operations, together with the existing cash on hand, and other available sources of financing, should be adequate to meet operating capital and regulatory needs for the foreseeable future.