Server: Microsoft-IIS/3.0 Date: Thu, 18 Dec 1997 09:00:55 GMT Content-Type: text/html Accept-Ranges: bytes Last-Modified: Mon, 25 Aug 1997 18:46:17 GMT Content-Length: 4927 Fact Sheet

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John Alden Restructures Healthcare Segment

MIAMI, FL, June 8, 1995--John Alden Financial Corp. (NYSE:JA) announced today that it has restructured its HealthCare segment in order to better focus its resources on product development and accelerate establishment of Health Maintenance Organizations (HMOs) in select markets.

Within the new structure, the development and management of idemnity and managed idemnity products will be distinct from HMO products.

John Alden Health Plans Inc. has been established to develop and manage HMOs in targeted markets. Currently, John Alden is participating in the Neighborhood Health Partnership, a joint venture HMO in South Florida, and has established an HMO in Las Vegas. An application for an HMO license has been filed in Ohio, and the company plans to file in North Carolina by the end of the 1995 second quarter. Additionally, other locations are under consideration for future development. John Alden will continue to pursue growth in its national market and its local markets, while incorporating more intensive managed care strategies to control utilization. The shift from national to state-driven reform should provide opportunities to expand the company's indemnity and managed indemnity business.

"The initial assumptions on which we based our marketing strategies have been validated," said Glendon Johnson, president, chairman and chief executive officer. "We have not altered our strategic direction, but have identified those areas where we feel the greatest opportunity for expansion exists. Market conditions, competition and the state of healthcare reform demonstrate that a successful managed care strategy will play a key role in our current and future success. We continue to grow our managed indemnity business, while incorporating additional managed care components into its administration. We have also accelerated our HMO establishment in our targeted markets."

Joseph Radigan continues as senior vice president of National HealthCare.

He is responsible for overseeing the operations of the company's indemnity and managed indemnity business. William Mauk, who serves as senior vice president of the company and CEO of the Neighborhood Health Partnership, has been named president of John Alden Health Plans Inc. He assumes responsibility for all of John Alden's HMO development and management. Gary Kadlec continues as president of North Star Marketing Corporation and has been promoted to Senior Vice President of Group Sales and Marketing and Chief Marketing Officer for John Alden Life Insurance Company. He will have responsibility for product marketing and market share development for indemnity, managed indemnity and HMO business.

The company's HealthCare Risk Management Division will continue to be led by W. James Tillett, president of Alden Risk Management Services.

John Alden Financial Corporation is an insurance holding company that, through its subsidiaries, is principally engaged in providing group life and health insurance and mangaged care services. John Alden is one of the largest providers of group insurance in this market. The company also markets annuities, life insurance to individuals, credit life and health insurance, extended service contracts and other health-related risk management services and products.


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