Ceres Group Repurchases 1,000,000 Shares of Its Stock
September 01 2005 - 9:21AM
Business Wire
Ceres Group, Inc. (NASDAQ:CERG) announced today that it has agreed
to purchase, in a private transaction, 1,000,000 shares of its
common stock for an aggregate purchase price of $5,920,000. This
purchase will bring the total number of shares repurchased pursuant
to its previously-announced stock repurchase program to 1,401,988
shares, at an average price of $5.90 per share. Therefore, the
company has approximately $1.7 million available under the program
for future stock repurchases in the open market or in private
transactions. This purchase of 1,000,000 shares occurred via a
private transaction negotiated with the International Managed Care
funds ("IMC"). Two directors of the company, Robert A. Spass and
Bradley E. Cooper, are affiliated with the IMC funds. This
transaction was approved by a majority of the company's
disinterested directors. The purchase price of $5.92 per share
represents a discount of 3% to the average closing price of Ceres'
stock for the five trading days ended August 31, 2005 and a
discount of 5% from the closing price of the common stock on August
31, 2005. No commissions were paid on the transaction. This
transaction is expected to close by September 8, 2005. Before this
transaction, the IMC funds held approximately 2.4 million shares of
Ceres' common stock. About Ceres Group Ceres Group, Inc., through
its insurance subsidiaries, provides a wide array of health and
life insurance products through two primary business segments.
Ceres' Medical Segment includes major medical health insurance for
individuals, families, associations and small businesses. The
Senior Segment includes senior health, life and annuity products
for Americans age 55 and over. To help control medical costs, Ceres
also provides medical cost management services to its insureds.
Ceres' nationwide distribution channels include independent agents
and electronic distribution systems. Ceres is included in the
Russell 3000(R) Index. For more information, visit www.ceresgp.com.
This news release contains certain forward-looking statements with
respect to the financial condition, results of operations and
business of the company. Forward-looking statements are statements
other than historical information or statements of current
condition. In light of the risks and uncertainties inherent in all
future projections, the inclusion of forward-looking statements
herein should not be regarded as representation by the company or
any other person that the objectives or plans of the company will
be achieved. Many factors could cause actual results to differ
materially from those contemplated by such forward-looking
statements, including, among others, business conditions and
competition in the healthcare industry, the failure to successfully
implement the business plans (including the company's growth
strategy) for the company and its subsidiaries, failure to
accurately predict claims liabilities, ability to institute
necessary rate increases, ability to develop, market and administer
new and competitive products, developments in healthcare reform and
other regulatory issues (including failure to meet statutory
capital requirements), rising healthcare costs, adverse outcomes in
litigation and related matters, failure to comply with financial
and other covenants in our loan agreement, and performance of our
reinsurers. This review of important factors should not be
construed as exhaustive. Investors and others should refer to
Ceres' filings with the Securities and Exchange Commission,
including its annual report on Form 10-K for the year ended
December 31, 2004, and its quarterly reports on Form 10-Q and other
periodic filings, for a description of the foregoing and other
factors. Ceres undertakes no obligation to update forward-looking
statements to reflect events or circumstances after the date hereof
or to reflect the occurrence of unanticipated events.
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