SOURCE: Ponce de Leon LTC RRG, Inc.

April 03, 2007 09:43 ET

Ponce de Leon Risk Retention Group Lowers per Bed Stock Purchase Price

TALLAHASSEE, FL -- (MARKET WIRE) -- April 3, 2007 -- Ponce de Leon LTC RRG, Inc., a market leader in liability insurance for Florida long-term care facilities, has cut the price of stock from $65 per licensed bed for nursing homes to $33, Edwin D. Taylor, Board Chairman, announced.

Ponce de Leon was formed four years ago to meet the critical need for liability insurance to cover long-term care facilities in Florida when traditional carriers were withdrawing from the market or pricing coverage beyond the reach of most nursing home operators.

Today, Ponce de Leon has grown into a major provider of general and professional liability insurance to Florida's long-term care industry. The Company now insures some 700 facilities in the State.

"The Board approved the lower cost of stock to make our comprehensive coverage available to more nursing home operators who still find it prohibitive to obtain insurance from traditional carriers," Taylor explained. He pointed out that, "Skilled Nursing Facilities are required under state law to have liability insurance, yet they continue to find it difficult to obtain in today's market."

Facilities seeking coverage from Ponce de Leon must become shareholders. The Company was formed under the Federal Liability Risk Retention Act of 1981, amended in 1986. It was capitalized by shareholders with assistance from the State in the form of a Surplus Note provided by the Florida Agency for Health Care Administration.

"Ponce de Leon has operated with a low loss ratio as a result of diligent underwriting, professional risk management, and aggressive defense against unfair claims," Taylor said. "With our new lower entry cost of $33 per bed, we will be able to serve more nursing homes that will benefit from our comprehensive program." The rate of $33 per bed for stock purchase will apply to Skilled Nursing Facilities and Assisted Living/Independent Living Facilities.

Information on how to join the Risk Retention Group can be obtained from Nadeene Wood-Clater, Senior Vice President-Marketing (nwoodclater@uni-ter.com); or Sharon Lanier, Senior Underwriter (slanier@uni-ter.com). The Uni-Ter Group of Atlanta, GA, is the Administrator of Ponce de Leon LTC RRG, Inc.

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