EXHIBIT 99.1
UICI LOGO
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Contact: Mark Hauptman
Vice President and CFO
UICI
NEWS RELEASE 9151 Grapevine Highway
North Richland Hills, Texas 76180
Phone: (817) 255-5200
(For Immediate Release)
UICI ANNOUNCES PRELIMINARY 2003 SECOND QUARTER AND FIRST SIX MONTHS RESULTS OF
OPERATIONS AT ITS INSURANCE OPERATIONS
FULL RESULTS WITHHELD PENDING SUBSTANTIAL COMPLETION OF AUDIT COMMITTEE
INVESTIGATION OF PREVIOUSLY DISCLOSED MATTERS AT THE COMPANY'S ACADEMIC
MANAGEMENT SERVICES CORP. SUBSIDIARY
DALLAS, TX, August 1, 2003----UICI (the "Company" NYSE: UCI) today reported
operating results at its Self-Employed Agency Division, Group Division, Life
Division and Other Key Factors business segments for the three and six months
ended June 30, 2003. Full consolidated results of operations and balance sheet
data for the Company have been withheld pending further investigation by the
Audit Committee of the Company's Board of Directors into previously disclosed
negative developments at the Company's Academic Management Services Corp.
subsidiary.
SELECTED SEGMENT OPERATING RESULTS
The table below sets forth, for the Company's insurance operations
(consisting of its Self-Employed Agency Division, Group Insurance Division and
Life Insurance Division) and Other Key
Factors business segments, income (loss) before taxes (which is hereinafter
referred to as "operating income (loss)") for the three and six months ended
June 30, 2003 and 2002.
<Table>
<Caption>
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
---------------------------- ----------------------------
2003 2002 2003 2002
------------ ------------ ------------ ------------
(In thousands)
Income (loss) from continuing operations before federal
income taxes:(1)
Insurance:
Self Employed Agency Division ....................... $ 24,508 $ 19,671 $ 48,302 $ 35,419
Group Insurance Division ............................ 3,023 3,311 8,106 5,058
Life Insurance Division ............................. (4,727) 2,817 (2,900) 5,432
------------ ------------ ------------ ------------
Total Insurance ................................. 22,804 25,799 53,508 45,909
------------ ------------ ------------ ------------
Equity interest in Healthaxis, Inc. operating loss .... (301) (7,925) (945) (8,099)
Other Key Factors:(2)
Investment income on equity, realized gains and
losses,
general corporate expenses and other (including ... (1,138) (3,754) (2,320) (4,090)
interest expense on non-student loan
indebtedness)
Variable stock-based compensation benefit ........... (1,685) (6,771) 452 (11,282)
------------ ------------ ------------ ------------
(expense)
Total Other Key Factors ......................... (2,823) (10,525) (1,868) (15,372)
------------ ------------ ------------ ------------
Income from continuing operations before federal
income taxes (excluding results at Academic
Management Services Corp.) ...................... $ 19,680 $ 7,349 $ 50,695 $ 22,438
============ ============ ============ ============
</Table>
See discussion below under the caption "Discontinued Operations" for results of
the Company's discontinued operations for the three and six months ended June
30, 2003.
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(1) Effective January 1, 2003, the Company began to allocate to the Company's
operating business segments certain general expenses relating to corporate
operations (consisting primarily of technology related expenses and expenses
associated with the operations of the Company's insurance company subsidiaries),
which expenses had been formerly reflected in the Other Key Factors segment. All
business segment results for all periods presented have been restated to reflect
such allocation. The Company believes that this allocation of certain general
expenses relating to corporate operations results in a more accurate portrayal
of the financial results of its insurance operations.
(2) The Other Key Factors segment includes investment income not allocated to
the other business segments, realized gains or losses on sale of investments,
certain other general expenses related to corporate operations, minority
interest, interest expense on corporate debt, variable stock-based compensation
benefit (expense), premium and related expenses associated with in-force
insurance policies written by the Company's former Senior Market Division and
the operating losses at the Company's former Barron Risk Management Services,
Inc. unit until its sale in September 2002.
UICI's results of operations at its Self-Employed Agency Division, Group
Insurance Division, Life Division and Other Key Factors business segments were
particularly impacted by the following factors:
Self Employed Agency Division
The Company's Self Employed Agency ("SEA") Division enjoyed significant
continued period-over-period growth in both revenue and operating income.
Operating income increased to $24.5 million and $48.3 million in the three and
six-month periods ended June 30, 2003, respectively, from $19.7 million and
$35.4 million in the corresponding 2002 periods. Earned premium revenue
increased from $222.4 million in the second quarter of 2002 to $297.8 million in
the second quarter of 2003 and from $418.5 million in the first six months of
2002 to $579.2 million in the first six months of 2003. For the six months ended
June 30, 2003, submitted annualized premium volume increased to $462.8 million
from $457.8 million in the corresponding 2002 period. Submitted annualized
premium volume decreased to $215.5 million in the second quarter of 2003 from
$230.6 million in the corresponding period of the prior
year. Submitted annualized premium volume in any period is the aggregate
annualized premium amount associated with health insurance applications
submitted by the Company's agents for underwriting by the Company.
Operating income as a percentage of earned premium revenue in the three and
six months ended June 30, 2003 was 8.2% and 8.3%, respectively, compared to 8.8%
and 8.5% in each of the corresponding periods of the prior year. This decrease
in operating margin was attributable primarily to the higher commission expense
associated with the increase in first year earned premium revenue. The SEA
Division's results for the first six months of 2003 included pre-tax income in
the amount of $4.8 million associated with the release of reserves resulting
from an adjustment to the Company's reserve methodology and certain changes in
accounting estimates.
Group Insurance Division
The Company's Group Insurance Division (consisting of the Company's Student
Insurance and STAR HRG business units) reported operating income of $3.0 million
and $8.1 million in the three and six months ended June 30, 2003, respectively,
compared to operating income of $3.3 million and $5.1 million in the
corresponding 2002 periods. The increase in operating income for the six month
2003 period was primarily attributable to the incremental operating income
associated with the Company's STAR HRG unit (which was acquired by the Company
on February 28, 2002) and an increase in earned premium revenue and a moderate
decrease in administrative expenses as a percentage of earned premium at the
Company's Student Insurance Division. These favorable factors were offset
somewhat by a slight increase in the loss ratio at the Group Insurance Division.
Life Insurance Division
For the three and six months ended June 30, 2003, the Company's Life
Insurance Division reported operating losses of $(4.7) million and $(2.9)
million, respectively, compared to operating income of $2.8 million and $5.4
million in the corresponding 2002 periods. The decrease in the three months
ended June 30, 2003 was primarily attributable to a previously announced charge
associated with the final resolution of litigation arising out of the close down
in 2001 of the Company's former workers compensation business and costs
associated with the closedown of the Company's College Fund Life Division
operations.
Other Key Factors
In the three and six months ended June 30, 2003, the Company's Other Key
Factors segment reported operating losses of $(2.8) million and $(1.9) million,
respectively, compared to operating losses of $(10.5) million and $(15.4)
million in the corresponding periods of 2002. The decrease in losses in the
Other Key Factors category in the first six months of 2003 as compared to 2002
was primarily attributable to significant decreases in variable stock-based
compensation expense in 2003 (as discussed more fully below) and $(5.1) million
of realized losses taken in the second quarter of 2002. The continued lower
prevailing interest rate environment in 2003 negatively affected investment
income attributable to equity determined after allocation to operating segment
portfolios. Investment income after allocation to the operating segments
decreased by $1.4 million in the first quarter of 2003 and by $2.2 million in
the first six months of 2003, in each case as compared to such income in the
corresponding 2002 periods.
In connection with the Company's stock accumulation plans established for
the benefit of the independent insurance agents and independent sales
representatives associated with UGA -- Association Field Services, New United
Agency and Cornerstone America, the Company has recognized and will continue to
recognize non-cash variable stock-based compensation benefit (expense) in
amounts that
depend and fluctuate based upon the market performance of the Company's common
stock. In the three and six months ended June 30, 2003, the Company recognized
non-cash variable stock-based benefit (expense) in the amount of $(1.7) million
and $452,000, respectively, associated with its agent stock accumulation plans.
During the three and six months ended June 30, 2002, the Company recognized
non-cash variable stock-based expense in the amount of $(6.8) million and
$(11.3) million, respectively, of which $(3.9) million and $(5.7) million,
respectively, was attributable to the Company's stock accumulation plans
established for the benefit of its independent agents, $(2.2) million and $(4.1)
million, respectively, was attributable to the allocation of the $5.25 UICI
shares under the UICI Employee Stock Ownership and Savings Plan and $(700,000)
and $(1.5) million, respectively, was attributable to other stock-based
compensation plans. As of December 31, 2002, all $5.25 UICI shares had been
allocated to participants' accounts under UICI's Employee Stock Ownership and
Savings Plan. Accordingly, in all periods commencing after December 31, 2002 the
Company will not recognize additional variable stock-based compensation
associated with the ESOP feature of the UICI Employee Stock Ownership and
Savings Plan.
DEVELOPMENTS AT ACADEMIC MANAGEMENT SERVICES CORP.
Academic Management Services Corp. ("AMS") (based in Swansea, MA) is a
wholly owned subsidiary of UICI engaged in the student loan origination and
funding business, student loan servicing business, and tuition installment
payment plan business. AMS finances its student loan origination activities
through seven special financing subsidiaries that issue debt securities secured
by a pledge of student loans and other qualified collateral.
On July 21, 2003, UICI reported the discovery of a shortfall in the
type and amount of collateral supporting two of the securitized student loan
financing facilities entered into by three special financing subsidiaries of
AMS. The problems at one of the financing facilities (the EFG-III LP commercial
paper conduit facility) are of three types: insufficient collateral, a higher
percentage of alternative loans (i.e., loans that are privately guaranteed as
opposed to loans that are guaranteed by the federal government) included in the
existing collateral than permitted by the loan eligibility provisions of the
financing documents and failure to provide timely and accurate reporting. The
problems related to the second financing subsidiary (AMS-1 2002, LP) consist
primarily of a higher percentage of alternative loans included in the existing
collateral than permitted by the loan eligibility provisions of the financing
documents, and the failure to provide timely and accurate reporting. In
addition, AMS and the other four special financing subsidiaries of AMS have
failed to comply with their respective reporting obligations under the financing
documents.
As announced on July 24, 2003, AMS has obtained waivers and releases
from interested third parties, as described more fully below, with respect to
four of the six securitized student loan financing facilities. The waiver and
release agreements were entered into with Bank of America and Fleet Bank (the
providers of a liquidity facility that supports the EFG-III, LP commercial paper
facility), Bank One (the trustee under the indentures that govern the terms of
the debt securities issued by each of AMS' special financing subsidiaries) and
MBIA Insurance Corporation (the financial guaranty insurer of debt securities
issued by four of the seven AMS financing subsidiaries).
The waiver and release agreement for the EFG-III, LP (one of AMS'
special purpose financing subsidiaries) commercial paper securitized student
loan facility calls for UICI's contribution of $48.25 million ($1.75 million on
July 24, 2003, $36.5 million on July 31, 2003 and $10.0 million on August 15,
2003) in cash to the capital of AMS, all of which, as of July 31, 2003, UICI had
contributed to AMS.
The financial institutions have agreed to waive all existing defaults
under the relevant financing documents with respect to EFG-III, LP and EFG
Funding (both of which are exclusively involved in the
commercial paper program) until January 1, 2004, which date will be
automatically extended for successive 90-day periods through September 30, 2004
if the outstanding amount of commercial paper is reduced to agreed-upon levels
from its current outstanding amount (approximately $440 million). As previously
announced, AMS has agreed to partially address the under-collateralization
problem by transferring to EFG-III, LP approximately $189 million of
federally-guaranteed student loan and other assets that meet loan eligibility
requirements under the financing documents and by transferring approximately
$34.4 million of uninsured student loans that do not meet loan eligibility
requirements under the financing documents. In addition, AMS will contribute to
EFG-III LP $46.5 million of the $48.25 million in cash contributed to AMS by
UICI either in the form of cash or federally guaranteed student loans. These
various transfers by AMS will substantially eliminate the shortfall in
collateral amount with respect to the EFG-III LP commercial paper conduit
facility.
With respect to the AMS-1 2002, LP facility, as of July 24, 2003, the
interested parties agreed to waive, for a period of 90 days, all defaults,
amortization events and events of default based solely on defaults arising prior
to July 24, 2003 resulting from non-federally insured student loans included in
the collateral in excess of the maximum percentage limit for such loans as set
forth in the documents governing the financing, which waiver is not extendable.
In addition, with respect to four other student loan financing facilities, the
interested parties agreed to waive, as of July 24, 2003, all immaterial
previously-existing defaults resulting from inaccurate or untimely reporting or
any other reporting deficiency by the applicable issuer under each such
facility, AMS or any other affiliate of AMS, for a period of 90 days, which
period is not extendable. Upon expiration of the 90-day waiver period, all then
uncured events of default shall be reinstated and be in full force and effect.
UICI believes that it has no obligations with respect to the
indebtedness of AMS' special financing subsidiaries or with respect to the
obligations of AMS relating to such financings. Nonetheless, in exchange for
UICI's capital contribution to AMS as described above, the financial
institutions named above have agreed to release UICI from any and all existing
claims or suits (other than claims for fraud at the UICI level) that could arise
relating to the AMS student loan financing facilities.
The recently announced events at AMS have had the immediate effect of
increasing AMS' cost of borrowings used to fund AMS' student loan originations.
This increase in borrowing cost will negatively impact the amount of student
loan interest rate spread income that AMS may earn in future periods.
Based on its investigation to date, UICI believes that its previously
published consolidated financial statements are fairly presented. UICI will
continue to assess the impact of the events at AMS on the carrying value of
UICI's investment in AMS, which, at March 31, 2003, was approximately $62.0
million and, giving effect to UICI's new contributions to the capital of AMS,
would be approximately $110.0 million. Any impairment in UICI's carrying value
may be reflected as a charge to UICI's earnings in the second quarter of 2003.
To assist in assessing possible impairment, the Company has engaged an
independent firm to perform a valuation of the goodwill at AMS.
As previously disclosed, the former president of AMS has been put on
leave and relieved of all responsibilities pending the completion of AMS' and
UICI's ongoing investigation into the matter. The Audit Committee of UICI's
Board of Directors, with the assistance of independent counsel, has commenced an
investigation into the matters and events leading to the announcement of the
collateral shortfalls at AMS' student loan financing facilities. Final release
of the Company's consolidated financial results for the three and six months
ended June 30, 2003 will be subject to completion of such investigation to the
satisfaction of the UICI Audit Committee. The Company currently intends to file
its Quarterly Report on Form 10-Q for the quarter ended June 30, 2003 in a
timely fashion. However, there can be no assurance that the Company will in fact
file its Quarterly Report on Form 10-Q on or before August 14 as required.
LIQUIDITY ISSUES
On July 31, 2003, UICI completed its contribution to the capital of AMS
of cash in the amount of $48.25 million in accordance with the terms of the
waiver and release agreements with the interested third parties to the AMS
financings. UICI is a holding company, the principal assets of which are its
investments in its separate operating subsidiaries, including its regulated
insurance subsidiaries. The holding company's ability to fund its cash
requirements is largely dependent upon its ability to access cash, by means of
interest income, loans or dividends or other means, from its subsidiaries. At
June 30, 2003, the Company at the holding company level held cash in the amount
of $20.6 million. The Company generated additional cash to fund its $48.25
million obligations under the AMS waiver and release agreements from loans and
dividends from offshore insurance subsidiaries, reimbursements under tax sharing
agreements with subsidiaries and loans and dividends from non-insurance
subsidiaries.
Payment by UICI of the capital contributions to AMS pursuant to the
terms of the waiver and release agreements has had a material adverse effect
upon the liquidity of the Company at the holding company level. Following
payment by the Company to AMS of $48.25 million in accordance with the terms of
the AMS waiver and release agreements, at July 31, 2003, the Company at the
holding company level held approximately $8.0 million in cash. The Company
currently anticipates that it will be able to fund its future estimated cash
requirements at the holding company level with cash currently on hand and cash
generated from the sources set forth above, plus dividends from regulated
domestic insurance subsidiaries. However, there can be no assurance that the
cash requirements at the holding company level will not exceed current
estimates.
The Company intends to adhere to its historical policy with regard to
dividends from its regulated domestic insurance company subsidiaries. The
Company's domestic insurance company subsidiaries have not paid cash dividends
in 2003. These subsidiaries will be able to pay $39.1 million in cash dividends
to the UICI holding company in December 2003 in the ordinary course of business
without prior approval of the regulatory authorities. However, as has been its
policy in the past, during the fourth quarter of 2003 the Company will assess
the results of operations of the regulated domestic insurance companies to
determine the prudent dividend capability of the subsidiaries, consistent with
UICI's practice of maintaining risk-based capital ratios at each of the
Company's domestic insurance subsidiaries significantly in excess of minimum
requirements. Historically, the Company has not received dividends from its
regulated domestic insurance subsidiaries in the full amount that it could
otherwise receive without prior regulatory approval.
DISCONTINUED OPERATIONS
The Company will report a net loss from discontinued operations in the
amount of $(6.4) million and $(6.5) million for the three and six months ended
June 30, 2003, respectively, compared to a net loss in the corresponding periods
of 2002 in the amount of $(1.2) million and $(2.1) million, respectively.
Results from discontinued operations in all periods presented include
the results of the Company's former Senior Market Division (other than premium
and expenses associated with the in-force insurance policies previously written
by the Senior Market Division). On May 30, 2003, UICI announced that its Board
of Directors, at a meeting held on May 29, 2003, adopted a plan to close by sale
or wind down the Senior Market Division, which the Company established in 2001
to develop long-term care and Medicare supplement insurance products for the
senior market. Included in results from discontinued operations in the three and
six months ended June 30, 2003 is a loss (net of tax) in the amount of $(7.4)
million and $(8.5) million, respectively, consisting of a write off of impaired
assets, operating losses incurred at the Senior Market Division through the
close-down date and costs associated
with the wind down and closing of the operations. The Company currently
anticipates incurring additional exit costs in the amount of approximately
$800,000, substantially all of which costs will be expensed as incurred in
future periods in accordance with Financial Accounting Standards Board Statement
No. 146, Accounting for Costs Associated with Exit or Disposal Activities.
CORPORATE PROFILE:
UICI (headquartered in North Richland Hills, Texas) through its subsidiaries
offers insurance (primarily health and life) and selected financial services to
niche consumer and institutional markets. Through its Self Employed Agency
Division, UICI provides to the self-employed market health insurance and related
insurance products, which are distributed primarily through the Company's
dedicated agency field forces, UGA-Association Field Services and Cornerstone
America. Through its Group Insurance Division, UICI provides tailored health
insurance programs for students enrolled in universities, colleges and
kindergarten through grade twelve and markets, administers and underwrites
limited benefit insurance plans for entry level, high turnover, hourly
employees. Through its Life Insurance Division, UICI offers life insurance
products to selected markets. The Company's Academic Management Services Corp.
unit (headquartered in Swansea, Massachusetts) seeks to provide financing
solutions for college and graduate school students, their parents and the
educational institutions they attend by marketing, originating, funding and
servicing primarily federally guaranteed student loans and by providing student
tuition installment payment plans. In 2002, UICI was added to the Standard &
Poor's Small Cap 600 Index. For more information, visit www.uici.net.
SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF
1995:
Certain statements set forth in this press release that are not
historical facts are forward-looking statements within the meaning of the
Private Securities Litigation Reform Act. Actual results may differ materially
from those included in the forward-looking statements. These forward-looking
statements involve risks and uncertainties including, but not limited to, the
ability to resolve all of the collateral and reporting issues associated with
AMS' securitized student loan financings; AMS' ability to prevent similar future
occurrences; AMS' ability to meet future student loan funding obligations; the
Company's ability to maintain adequate liquidity to satisfy its obligations;
changes in general economic conditions, including the performance of financial
markets, and interest rates; competitive, regulatory or tax changes that affect
the cost of or demand for the Company's products; health care reform; the
ability to predict and effectively manage claims related to health care costs;
and reliance on key management and adequacy of claim liabilities.
The Company's future results will depend in large part on accurately
predicting health care costs incurred on existing business and upon the
Company's ability to control future health care costs through product and
benefit design, underwriting criteria, utilization management and negotiation of
favorable provider contracts. Changes in mandated benefits, utilization rates,
demographic characteristics, health care practices, provider consolidation,
inflation, new pharmaceuticals/technologies, clusters of high-cost cases, the
regulatory environment and numerous other factors are beyond the control of any
health plan provider and may adversely affect the Company's ability to predict
and control health care costs and claims, as well as the Company's financial
condition, results of operations or cash flows. Periodic renegotiations of
hospital and other provider contracts coupled with continued consolidation of
physician, hospital and other provider groups may result in increased health
care costs and limit the Company's ability to negotiate favorable rates. In
addition, the Company faces competitive and regulatory pressure to contain
premium prices. Fiscal concerns regarding the continued viability of
government-sponsored programs such as Medicare and Medicaid may cause decreasing
reimbursement rates for these programs. Any limitation on the Company's ability
to increase or maintain its premium levels, design products,
implement underwriting criteria or negotiate competitive provider contracts may
adversely affect the Company's financial condition or results of operations.
The Company's insurance subsidiaries are subject to extensive regulation in
their states of domicile and the other states in which they do business under
statutes that typically delegate broad regulatory, supervisory and
administrative powers to state insurance departments and agencies. State
insurance departments have also periodically conducted and continue to conduct
financial and market conduct examinations and other inquiries of UICI's
insurance subsidiaries. State insurance regulatory agencies have authority to
levy monetary fines and penalties resulting from findings made during the course
of such examinations and inquiries. Historically, the Company's insurance
subsidiaries have from time to time been subject to such regulatory fines and
penalties. While none of such fines or penalties individually or in the
aggregate have to date had a material adverse effect on the results of
operations or financial condition of the Company, the Company could be adversely
affected by increases in regulatory fines or penalties an/or changes in the
scope, nature and/or intensity of regulatory scrutiny and review.
The Company provides health insurance products to consumers in the
self-employed market in 44 states. A substantial portion of such products is
issued to members of various independent membership associations that endorse
the products and act as the master policyholder for such products. The two
principal membership associations in the self-employed market for which the
Company underwrites insurance are the National Association for the Self-Employed
("NASE") and the Alliance for Affordable Services ("AAS"). The associations
provide their membership with a number of endorsed benefits and products,
including health insurance underwritten by the Company. Subject to applicable
state law, individuals generally may not obtain insurance under an association's
master policy unless they are also members of the associations. UGA agents and
Cornerstone agents also act as enrollers of new members for the associations,
for which the agents receive compensation. Specialized Association Services,
Inc. (a company controlled by the adult children of Ronald L. Jensen, the
Chairman of the Company) provides administrative and benefit procurement
services to the associations, and a subsidiary of the Company sells new
membership sales leads to the enrollers and video and print services to the
associations and to Specialized Association Services, Inc. In addition to health
insurance premiums derived from the sale of health insurance, the Company
receives fee income from the associations, including fees associated with the
enrollment of new members, fees for association membership marketing and
administrative services and fees for certain association member benefits. The
agreements with these associations requiring the associations to continue as the
master policyholder and to endorse the Company's insurance products to their
respective members are terminable by the Company and the associations upon not
less than one year's advance notice to the other party.
Recent articles in the popular press have been critical of association
group coverage. In December 2002, the National Association of Insurance
Commissioners (NAIC) convened a special task force to review association group
coverage, and the Company is aware that selected states are reviewing the laws
and regulations under which association group policies are issued. The Company
has also recently been named a party to several lawsuits challenging the nature
of the relationship between the Company's insurance companies and the
associations that have endorsed the insurance companies' health insurance
products. While the Company believes it is providing association group coverage
in full compliance with applicable law, changes in the relationship between the
Company and the membership associations and/or changes in the laws and
regulations governing so-called "association group" insurance (particularly
changes that would subject the issuance of policies to prior premium rate
approval and/or require the issuance of policies on a "guaranteed issue" basis)
could have a material adverse impact on the financial condition, results of
operations and/or business of the Company.
The Company's Academic Management Services Corp. business could be
adversely affected by changes in the Federal Higher Education Act of 1965, which
authorizes and governs most federal student
aid and student loan programs, and/or changes in other relevant federal or state
laws, rules and regulations. The Higher Education Act is subject to review and
reauthorization by the recently convened 108th Congress. Congress last
reauthorized the Higher Education Act in 1998. While the Company believes that
the Higher Education Act of 1965 will in fact be reauthorized, there can be no
assurance of the form that reauthorization will take or the changes that the
reauthorization bill will bring to the law and regulations governing student
finance.
In addition, existing legislation and future measures by the federal
government may adversely affect the amount and nature of federal financial
assistance available with respect to loans made through the U.S. Department of
Education. Finally, the level of competition currently in existence in the
secondary market for loans made under the Federal Loan Programs could be
reduced, resulting in fewer potential buyers of the Federal Loans and lower
prices available in the secondary market for those loans.
UICI press releases and other company information are available at UICI's
website located at www.uici.net.