UNIVERSAL AMERICAN
FINANCIAL CORP.
FOR IMMEDIATE RELEASE
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UNIVERSAL AMERICAN FINANCIAL CORP. SIGNS DEFINITIVE
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AGREEMENT TO ACQUIRE PYRAMID LIFE INSURANCE
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COMPANY FOR $56 MILLION
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Rye Brook, NY - December 23, 2002 - UNIVERSAL AMERICAN FINANCIAL CORP. (NASDAQ
NATIONAL MARKET: UHCO) ("Universal American") announced today that one of its
subsidiaries has entered into a definitive contract to acquire Pyramid Life
Insurance Company ("Pyramid Life") from Ceres Group, Inc. (Nasdaq National
Market: CERG) for $56 million in cash. The closing of the transaction, which is
subject to regulatory approvals and other customary conditions, is scheduled to
close during the first quarter of 2003.
Founded in 1913, Pyramid Life specializes in providing health and life insurance
products to the senior market. These products include Medicare supplement,
long-term care, life insurance, and annuities. Pyramid Life markets its products
in 26 states through a career agency sales force of over 1,100 career agents
operating out of 29 Senior Solutions Sales Centers. As of the end of the third
quarter of 2002, Pyramid Life had approximately $110 million of premium in force
and in excess of $100 million of assets.
"This is an ideal acquisition for our company," stated Richard Barasch, chairman
and CEO of Universal American. "Pyramid Life has a profitable block of in force
premium and a first rate sales organization that has consistently produced high