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[American Medical Security Group, Inc. Logo]

--------------------------          [For more information contact: Cliff Bowers,
   NEWS RELEASE                      Vice President, Corporate Communications,
   for Immediate Release             (920) 661-2766, Gary Guengerich, Executive
--------------------------           Vice President & CFO, (920) 661-2486]

                     American Medical Security Group Reports
                Fourth Quarter & Full-Year 2001 Financial Results

o Net income of $0.30 per share in 4th quarter; exceeds expectations
o Full-year income per share of $0.70, before nonrecurring item
o Company increases guidance for 2002
o Health segment loss ratio improves for fifth consecutive quarter
o Cash flow positive in quarter, full year

        GREEN BAY, Wis. -- February 4, 2002 -- American Medical Security Group,
Inc. (NYSE:AMZ)(AMS), today reported net income of $4.3 million or $0.30 per
share for the fourth quarter of 2001. That compares to net income of $0.1
million or $0.01 per share in the fourth quarter of 2000, and $3.5 million or
$0.25 per share in the third quarter of 2001.

        For the full-year 2001, the company reported income of $10.0 million or
$0.70 per share excluding a $0.41 nonrecurring litigation charge in the first
quarter. That compares to net income of $2.7 million or $0.18 per share for the
year 2000. AMS' income and income per share have improved in each of the last
five quarters.

                                     Ad One

        "AMS began to realize its strong potential in 2001," said Samuel V.
Miller, AMS Chairman & Chief Executive Officer. "Our positive results,
particularly in the last half of the year, reflect the culmination of aggressive
rate action over several quarters, a redefinition of our markets and strong
expense control."

        According to Miller, these actions have particularly benefited AMS'
smallgroup business which is now experiencing a significant turnaround following
two years of depressed performance.

        "We've made great strides in improving our profitability. Now, in light
of the positive reception for our new products, the addition of an industry
veteran as Chief Marketing Officer, and an improving competitive climate, we
hope to begin growing membership and revenues again in the second half of the
year, while maintaining our margins," Miller said.


                              MEMBERSHIP & REVENUE
        During 2000 and 2001, AMS addressed rising health claim costs by
increasing premiums and exiting certain unprofitable markets. As anticipated,
these actions led to a decline in membership and revenues but improved the
company's loss ratio and profitability.

        Total health segment membership was 557,716 at the end of 2001 compared
to 687,863 at the end of 2000.

        For the fourth quarter of 2001, total revenues were $208 million,
compared to $240 million in the same period of 2000. Total revenues were $877
million for full-year 2001, versus $990 million for the prior year. The decline
in revenues for both the fourth quarter and full-year 2001 reflect declining
membership and a higher proportion of individual MedOne business, partially
offset by increased premiums.

        MedOne membership increased slightly in the fourth quarter of 2001, and
also continued to grow as a percentage of the company's overall business. MedOne
membership for the fourth quarter of 2001 represented 45% of AMS' total
membership, compared to 43% for the third quarter of 2001 and 34% for the fourth
quarter of 2000.

                                     Ad Two

        In January 2002, Tim O'Keefe was named AMS Senior Vice President & Chief
Marketing Officer. He has more than 12 years of executive management experience
with a number of companies in the health insurance field. A key focus for
O'Keefe will be the successful rollout of the company's new small group,
individual, dental and short-term medical products. Agent reaction to the new
products in states where they have been introduced has been very positive, and
quote requests are up significantly.

                            HEALTH SEGMENT LOSS RATIO
        The company's health segment loss ratio has declined for the fifth
consecutive quarter. In the fourth quarter of 2001, the health loss ratio was
68.9% compared to 71.3% in the third quarter of 2001 and 76.4% for the fourth
quarter of 2000. For the full-year 2001, the health segment loss ratio was 72.6%
compared to 77.2% for 2000. The improvement results from AMS' premium increases
surpassing increases in claim costs, and, to a lesser degree, a change in the
company's product mix.

        "The improvement in our loss ratio has surpassed our expectations in the
past two quarters," said Gary D. Guengerich, Executive Vice President & Chief
Financial Officer. "We believe this positive trend will moderate but continue
into 2002."


                          HEALTH SEGMENT EXPENSE RATIO
        The company's health expense ratio for the fourth quarter of 2001 was
28.0% versus 27.0% in the third quarter of 2001 and 24.7% in the fourth quarter
of 2000. The increases primarily reflect lower premiums and a product mix change
driven by growth in the MedOne business. The MedOne business has higher selling
and administrative expenses but lower claim costs than the small group product.

                                 COMBINED RATIO
        The total health segment loss ratio plus the expense ratio, or the
combined ratio, improved to 96.9% in the fourth quarter of 2001, compared to
98.3% in the third quarter of 2001, and 101.1% in the fourth quarter of 2000.


                                    Ad Three

                            CASH FLOW & BALANCE SHEET
        Cash flow provided by operations was $17.1 million in the fourth quarter
of 2001 and $17.6 million for the full year, a reflection of the increasing
profitability of the company. The company expects cash flow for 2002 to
significantly exceed that of 2001.

        AMS had a book value per share of $16.30 and a tangible book value per
share of $8.85 at the end of the fourth quarter of 2001. That compares to $15.77
and $8.24 at the end of the fourth quarter of 2000.

                                EARNINGS GUIDANCE
        "We are increasing our earnings guidance for 2002 based on our
significantly improved financial performance in the past two quarters,"
Guengerich said. "While there may be material upside potential beyond these
estimates, our guidance is based on rapidly emerging positive trends, tempered
by the inherent variables in our business."

        The company currently projects that its earnings per share will be
approximately $0.30 for the first quarter of 2002 and between $1.15 and $1.25
for full-year 2002. The full-year amount includes approximately $0.17 per share
resulting from the nonamortization of goodwill from the adoption of FASB
Statement No. 142, "Goodwill and Other Intangible Assets."

                                  OTHER NEWS
        On January 29, 2002, Blue Cross and Blue Shield United of Wisconsin, a
wholly owned subsidiary of Cobalt Corporation, and a holder of 45% of the
outstanding shares of AMS, filed with the company notice of its intent to
nominate four persons for election to the AMS Board of Directors at the 2002
annual meeting of AMS shareholders.


        Cobalt had previously made a 13D filing in which it stated it was
considering submitting such nominations and was also looking at alternative
methods of disposing of its shares of AMS. The company has been engaged in
discussions with Cobalt concerning how to address Cobalt's need to dispose of
its shares in a manner that is favorable to all of the company's shareholders.


                                     Ad Four

        American Medical Security Group, through its operating subsidiaries,
markets health care benefits and insurance products to small businesses,
families and individuals. Insurance products of American Medical Security Group
are underwritten by United Wisconsin Life Insurance Company. The company serves
customers nationwide through partnerships with professional, independent agents
and quality health care providers. It provides medical and dental coverage for
557,716 members.

                                    # # # # #

        The full-year 2001 income reported in the text of this document excludes
the effect of the first quarter 2001 litigation charge. Including the charge,
full-year 2001 GAAP net income is $4.2 million or $0.29 per share. The company's
balance sheet and statement of income which reconcile the 2001 pro forma income
to GAAP net income follow.

        AMS will host a conference call to discuss its financial results and
strategic plans on Tuesday, February 5, 10:00 a.m. (Central Time). Interested
parties may listen to the conference call live via the Investor Section of the
company's website at The call will be archived at the same site
beginning a few hours after the live webcast. Listen-only access to the live
conference call is also available by dialing 719-457-2620. (Confirmation number

        The directors and executive officers of American Medical Security Group,
Inc. ("AMS") and certain other persons may be deemed to be participants in
solicitation by AMS of proxies from its shareholders in connection with AMS'
2002 Annual Meeting of Shareholders. Information concerning such participants
was filed by AMS with the Securities and Exchange Commission (the "SEC") on
January 22, 2002.

interested parties may obtain, free of charge, copies of AMS' proxy statement,
and any other documents filed by AMS with the SEC, at the SEC's Internet web
site at When available, definitive proxy statements and other
documents may also be obtained by contacting AMS: Cliff Bowers, American Medical
Security Group, Inc., P.O. Box 19032, Green Bay, WI 54307-9032. (920) 661-2766


                                     Ad Five

Cautionary Statement: Some of the statements contained in this press
release are "forward-looking" statements within the meaning of the safe harbor
provisions of the United States Private Securities Litigation Reform Act of
1995. Generally, forward-looking statements express expectations for or about
the future, rather than historical fact. Forward-looking statements are subject
to inherent risks and uncertainties that may cause actual results or events to
differ materially from those contemplated by such statements. Such risks and
uncertainties include, among others, unexpected increases in medical costs;
increased utilization of prescription drugs or medical services resulting from
bioterrorism concerns or otherwise; the Company's ability to predict rising
health care costs and adequately price its products; the Company's ability to
increase its agent distribution force, generate new sales, sell new products and
retain existing customers; changes in the Company's relationships with key
agents that sell its products; the Company's ability to control expenses during
a time of declining revenue and membership; legislative and regulatory matters,
including the effects of health care or other legislation or regulation, delays
in regulatory approvals, and regulatory action resulting from market conduct
activity; general business conditions, including competitive practices and
demand for the Company's existing and new products; development of and changes
in claims reserves; rating agency policies and practices; general economic
conditions, including the effect of changes in interest rates on the Company's


     investment  portfolio;  the outcome of commercial or other litigation;  and
other factors that may be referred to in American Medical Security Group, Inc.'s
reports  filed  with the  Securities  & Exchange  Commission  from time to time.
Forward-looking  statements made in this release express expectations only as of
the date they are made.  The Company does not undertake any obligation to update
or revise such statements as a result of new information or future events.


                          American Medical Security Group, Inc.
                        Condensed Consolidated Statements Of Income

                                                 Three Months Ended            Twelve Months Ended
                                                     December 31,                  December 31,
                                                ----------------------         -----------------------
                                                  2001        2000              2001       2000

                                                        (In thousands, except per share data)
   Insurance premiums                           $ 198,158   $ 230,666         $ 838,672    $ 951,071
   Investment income                                4,244       4,618            17,443       19,007
   Realized investment gain (loss)                     60        (123)             (779)        (325)
   Other revenue                                    5,207       4,945            21,285       20,112
                                                ----------------------        -----------------------

       Total revenues                             207,669     240,106           876,621      989,865

   Medical and other benefits                     135,188     174,397           601,942      724,613
   Selling, general and administrative             61,945      63,085           248,742      251,767
   Interest expense                                   570         915             2,877        3,584
   Amortization of goodwill and intangibles           908         946             3,628        3,785
                                                ----------------------        -----------------------

       Total expenses                             198,611     239,343           857,189      983,749

Income before income taxes and
    non-recurring item                              9,058         763            19,432        6,116

Income tax expense                                  4,713         637             9,407        3,447
                                                ----------------------        -----------------------_

Income before non-recurring item                    4,345         126            10,025        2,669

Non-recurring item, net of tax                         --          --             5,850           --

Net income                                      $   4,345   $     126         $   4,175    $   2,669
                                                ======================        =======================

Income before non-recurring item per share:
   Basic                                        $    0.31   $    0.01         $    0.71    $    0.18
   Diluted                                      $    0.30   $    0.01         $    0.70    $    0.18

Net income per share:
   Basic                                        $    0.31   $    0.01         $    0.30    $    0.18
   Diluted                                      $    0.30   $    0.01         $    0.29    $    0.18


                      American Medical Security Group, Inc.
                      Condensed Consolidated Balance Sheets

                                                                    December 31,  December 31,
                                                                        2001         2000
                                                                            (In thousands)

   Securities available for sale, at fair value:
     Fixed maturities                                            $  269,753    $    262,428
     Equity securities-preferred                                        722           2,368
   Fixed maturity securities held to maturity, at amortized cost      4,286           4,320
   Trading securities, at fair value                                    517             260
       Total investments                                            275,278         269,376

Cash and cash equivalents                                            24,975          15,606

Other assets:
   Property and equipment, net                                       33,381          32,451
   Goodwill and other intangibles, net                              103,934         107,562
   Other assets                                                      35,447          46,928
       Total other assets                                           172,762         186,941

Total assets                                                     $  473,015    $    471,923


   Medical and other benefits payable                            $  135,504    $    145,310
   Advance premiums                                                  16,737          17,568
   Payables and accrued expenses                                     28,032          25,902
   Notes payable                                                     40,058          41,258
   Other liabilities                                                 23,284          20,708
       Total liabilities                                            243,615         250,746

Shareholders' equity:
    Common stock                                                     16,654          16,654
   Paid-in capital                                                  187,927         187,956
   Retained earnings                                                 40,470          36,295
   Accumulated other comprehensive gain (loss)                        1,903          (3,948)
   Treasury stock                                                   (17,554)        (15,780)
       Total shareholders' equity                                   229,400         221,177

Total liabilities and shareholders' equity                       $  473,015    $    471,923

                                          End of Filing