Contacts: Edmund
E. Kroll
Senior Vice President, Finance and
Investor Relations
(212) 759-0382
ekroll@centene.com
Sandy McBride
Senior Director, Corporate
Communications
(314) 725-4477
smcbride@centene.com
FOR
IMMEDIATE RELEASE
CENTENE
CORPORATION CLOSES ACQUISITION OF
CELTIC
INSURANCE COMPANY
ST. LOUIS, MISSOURI (July 2, 2008) –Centene
Corporation (NYSE: CNC) today announced that it has closed the acquisition of
Celtic Group, Inc., the parent company of Celtic Insurance Company (“Celtic”),
effective July 1, 2008. Concurrent with regulatory approval of the
transaction, Centene received regulatory approval from the Illinois Division of
Insurance to realize an extraordinary dividend.
Celtic
is a national individual health insurance provider that provides high-quality,
affordable health insurance to individual customers and their
families. This acquisition uniquely positions Centene as a national
leader in providing government-sponsored and market-driven solutions to increase
access to high-quality, affordable healthcare for all Americans.
Michael
F. Neidorff, Chairman and Chief Executive Officer of Centene, stated, "We are
very pleased to close on this transaction because Celtic will play an important
role in advancing our goal of building a multi-line healthcare enterprise.
Celtic positions us to offer a broad range of coverage solutions customized to
the unique needs of each state. This acquisition is consistent with
our product diversification strategy to add complementary capabilities that
allow us to meet the evolving needs of our state customers.”
The
transaction is expected to be immaterial to earnings per share in
2008.
About
Centene Corporation
Centene
Corporation is a leading multi-line healthcare enterprise that provides programs
and related services to individuals receiving benefits under Medicaid, including
the State Children's Health Insurance Program (SCHIP), Supplemental Security
Income (SSI) and Medicare (Special Needs Plans). The Company operates health
plans in Arizona, Georgia, Indiana, New Jersey, Ohio, South Carolina, Texas and
Wisconsin. In addition, the Company contracts with other healthcare and
commercial organizations to provide specialty services including behavioral
health, life and health management, long-term care, managed vision, nurse
triage, pharmacy benefits management and treatment compliance. Information
regarding Centene is available via the Internet at www.centene.com.
The
information provided in this press release contains forward-looking statements
that relate to future events and future financial performance of Centene.
Subsequent events and developments may cause the Company's estimates to change.
The Company disclaims any obligation to update this forward-looking financial
information in the future. Readers are cautioned that matters subject to
forward-looking statements involve known and unknown risks and uncertainties,
including economic, regulatory, competitive and other factors that may cause
Centene's or its industry's actual results, levels of activity, performance or
achievements to be materially different from any future results, levels of
activity, performance or achievements expressed or implied by these
forward-looking statements. Actual results may differ from projections or
estimates due to a variety of important factors, including Centene's ability to
accurately predict and effectively manage health benefits and other operating
expenses, competition, changes in healthcare practices, changes in federal or
state laws or regulations, inflation, provider contract changes, new
technologies, reduction in provider payments by governmental payors, major
epidemics, disasters and numerous other factors affecting the delivery and cost
of healthcare. The expiration, cancellation or suspension of Centene's Medicaid
Managed Care contracts by state governments would also negatively affect
Centene.
###