Chancellor Corporation Shareholder Letter Announcing Acquisition of Life
Insurance Organization
Released_By: GeraldsNet
Date: 6/27/98
Time: 2:03:32 AM
For_Immediate_Release
The financial subsidiary of Chancellor Corporation "CELR" announced today
that the Company has acquired controlling interest in a Fraternal Insurance
Society, one of only 70 such organizations in the country. The total price of
the acquisition was listed at $2.5 million in a combined cash, stock, and notes
transaction. The acquisition includes real estate, office furniture and
fixtures, in addition to all present and future business of the non-profit
Fraternal Organization. Chancellor President, Martin Newman stated, "we expect a
smooth transition. All current management including the President will stay in
place, along with his seasoned professional staff." Gross premiums for written
policies for the next 12 months are projected at $35 million. With the company
holding a unique insurance license that permits it to market benefits in all
fifty states by mail, over the Internet, and through its licensed agents,
Chancellor Corporation will embark upon a new and exciting marketing strategy
that includes changing the Fraternal’s name.
Present members are currently offered only limited forms of Life, Health and
Group Annuity insurance contracts. New plans call for immediate expansion of
additional programs of limited coverage requiring minimum underwriting and
administrative costs from reimbursement of medical and hospital expenses for the
treatment of specified diseases, such as Aids or Cancer to Doctor and Emergency
Room visits, for all medical needs.
Other programs ready to be implemented are; Individual Annuities, Pre-Paid
Legal Services, Motor Club Road Service as well as Home Health Care and related
plans like Extended Care and Long Term Care needs. Premiums anticipated from
these programs are expected to be in the $75 to $80 million range per year, with
better than industry loss ratios.
MARTIN NEWMAN President & CEO Chancellor Corporation For more information,
contact: GERALD COMMUNICATIONS Gerald Sterchi -Director Investor Relations (916)
854-4931 Fax (916) 983-7783 E-Mail: gerald@geraldsnet.com URL:
http://www.celr.com
