HOUSTON, Sept. 15 /PRNewswire-FirstCall/ -- Administaff, Inc. (NYSE: ASF),
the nation's leading professional employer organization, today announced it
has renewed its workers' compensation program and related policies with
selected member insurance companies of American International Group, Inc.
("AIG"), world leaders in insurance and financial services. The AIG member
companies will continue to provide statutory workers' compensation coverage
for Administaff's corporate and worksite employees. The one-year arrangement,
effective Oct. 1, 2006, provides for the same coverage as last year, and
stipulates the return of $4 million of accumulated interest currently held by
AIG. Additionally, as a result of a reduction in administrative charges and
lower anticipated claim costs, AIG has set monthly funding rates approximately
29% lower than the prior year funding rates.
"We are pleased to continue our relationship with AIG, and with the terms
of the new program," said Richard G. Rawson, Administaff's president. "The
reduction in funding rates for the second consecutive year reflects the
successful management of this program by our dedicated property and casualty
staff."
Under the arrangement, Administaff makes monthly payments to AIG comprised
of premium costs and funds to be set aside for payment of future claims.
Administaff bears the economic burden for the first $1 million layer of claims
per occurrence, while AIG bears the economic burden for all claims in excess
of the first $1 million layer. Administaff employs a third-party actuary to
assist in the estimation of incurred claim costs.
Administaff is the nation's leading professional employer organization
(PEO), serving as a full-service human resources department that provides
small and medium-sized businesses with administrative relief, big-company
benefits, reduced liabilities and a systematic way to improve productivity.
The company operates 41 sales offices in 22 major markets. For additional
information, visit Administaff's Web site at http://www.administaff.com .
The statements contained herein that are not historical facts are forward-
looking statements within the meaning of the federal securities laws (Section
27A of the Securities Act of 1933 and Section 21E of the Securities Exchange
Act of 1934). You can identify such forward-looking statements by the words
"expects," "intends," "plans," "projects," "believes," "estimates," "likely,"
"possibly," "probably," "goal," "objective," "target," "assume," "outlook,"
"guidance," "predicts," "appears," "indicator" and similar expressions.
Forward-looking statements involve a number of risks and uncertainties. In
the normal course of business, Administaff, Inc., in an effort to help keep
our stockholders and the public informed about our operations, may from time
to time issue such forward-looking statements, either orally or in writing.
Generally, these statements relate to business plans or strategies, projected
or anticipated benefits or other consequences of such plans or strategies, or
projections involving anticipated revenues, earnings, unit growth, profit per
worksite employee, pricing, operating expenses or other aspects of operating
results. We base the forward-looking statements on our current expectations,
estimates and projections. These statements are not guarantees of future
performance and involve risks and uncertainties that we cannot predict. In
addition, we have based many of these forward-looking statements on
assumptions about future events that may prove to be inaccurate. Therefore,
the actual results of the future events described in such forward-looking
statements could differ materially from those stated in such forward-looking
statements. Among the factors that could cause actual results to differ
materially are: (i) changes in general economic conditions; (ii) regulatory
and tax developments and possible adverse application of various federal,
state and local regulations; (iii) changes in our direct costs and operating
expenses including, but not limited to, increases in health insurance premiums
and workers' compensation rates and underlying claims trends, financial
solvency of workers' compensation carriers and other insurers, state
unemployment tax rates, liabilities for employee and client actions or
payroll-related claims, changes in the costs of expanding into new markets,
and failure to manage growth of our operations; (iv) the effectiveness of our
sales and marketing efforts; (v) changes in the competitive environment in the
PEO industry, including the entrance of new competitors and our ability to
renew or replace client companies; (vi) our liability for worksite employee
payroll and benefits costs; and (vii) an adverse final judgment or settlement
of claims against Administaff. These factors are discussed in further detail
in Administaff's filings with the U.S. Securities and Exchange Commission.
Any of these factors, or a combination of such factors, could materially
affect the results of our operations and whether forward-looking statements we
make ultimately prove to be accurate.
SOURCE Administaff, Inc.
09/15/2006
CONTACT: investor relations, Douglas S. Sharp, Vice President, Finance,
Chief Financial Officer and Treasurer, +1-281-348-3232, or
Douglas_Sharp@Administaff.com , or news media, Jason Cutbirth, Managing
Director, Marketing and Corporate Communications, +1-281-312-3085, or
Jason_Cutbirth@Administaff.com , both of Administaff, Inc.
3413 09/15/2006 09:03 EDT http://www.prnewswire.com
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