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ADMINISTAFF ANNOUNCES
INCREASED CASH AND WORKING CAPITAL
RELATED TO ITS
WORKERS’ COMPENSATION
AND HEALTH CARE INSURANCE
PROGRAMS
HOUSTON - June
2, 2005 - Administaff, Inc. (NYSE: ASF), the nation’s leading
Professional Employer Organization (PEO), today announced the
reduction of $34.3 million of deposits the company had previously
made under its workers’ compensation and health insurance
programs.
In May 2005,
Administaff received $16.8 million in deposits previously held by
its workers’ compensation insurance carrier, American
International Group, Inc. (“AIG”), related to the
2003-2004 policy. Under the arrangement with AIG, a portion of
Administaff’s monthly premiums is set aside to fund the
payment of claims, and any excess premiums funded into the program
are returned to Administaff subsequent to the end of the policy
period.
On June 1,
2005, Administaff finalized its recently announced three-year
definitive agreement with its primary health insurance carrier,
UnitedHealthcare. Under the new arrangement, the requirement for
the current $17.5 million security deposit has been eliminated, and
such amount will be used to reduce Administaff’s funding
requirements in the second quarter of 2005.
“These
developments reflect the successful management of our
workers’ compensation and health insurance programs,”
said Richard G. Rawson, Administaff president. “We appreciate
the ongoing commitment of both A
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