Administaff Announces Further Improvements To Its Workers' Compensation Program

Houston, TX - Administaff, Inc. one of the leading providers of human resources services for small and medium-sized business, recently announced it has selected ACE Group of Companies ("ACE"), an A+ XV rated property and casualty insurance company, to provide statutory workers' compensation coverage for all of its corporate and worksite employees effective Oct. 1, 2007. The policy with ACE provides the same coverage as the company's current insurance policy, whereby Administaff Captive Insurance Companies Limited will reinsure ACE for the first $1M of claims per occurrence.

Under the new program, Lockton Companies, Inc., the nation's seventh largest property and casualty insurance broker, will provide policy administration services. Claims adjudication will continue to be performed by Specialty Risk Services, a division of The Hartford Insurance Companies.

"We have successfully executed on our strategy to further unbundle the critical components of our workers' compensation program," said Richard G. Rawson, Administaff's president. "This improved structure will allow for additional administrative cost savings and provide further flexibility for insurance carrier options in future years."

The new arrangement is expected to result in administrative cost savings of at least $2M in the first policy year, as well as a reduction in cash funding levels related to expected claims.

Administaff is the nation's leading professional employer organization (PEO), serving as a full-service human resources department that provides small and medium-sized businesses with administrative relief, big-company benefits, reduced liabilities and a systematic way to improve productivity. The company operates 47 sales offices in 23 major markets. For additional information, visit Administaff's Web site at http://www.administaff.com.

SOURCE: Administaff, Inc.