Delphi Financial Group, Inc. Announces Strategic Acquisition In Integrated Disability

Wilmington, DE-based Delphi Financial Group, Inc. says it has signed a definitive agreement to acquire Matrix Absence Management, Inc., a provider of integrated disability services to the employee benefits market, for a combination of stock, cash and notes. The transaction is expected to close shortly.

Based in San Jose, CA, Matrix provides a full spectrum of consulting, administrative and case management services. Its clients are many of the major companies on the West Coast, including leaders in the technology sector. Matrix manages employee absence and hence reduces the productivity losses companies suffer when highly trained employees are out of work. Its service integrates long-term and short-term disability, workers' compensation, Family Medical Leave Act compliance and a variety of other disparate programs through a seamless delivery system.

Robert Rosenkranz, chairman and chief executive of Delphi, says, "We are excited to announce this breakthrough acquisition. Integrated disability has become an increasingly important market driver in the employee benefits business. Matrix is a pioneer in this field. The Matrix system has proven that an effective integrated disability system can provide clients with significant value-added, primarily through increases in productivity. For over a year, our subsidiary, Reliance Standard Life, and Matrix have worked together as strategic partners. This partnership arrangement has generated significant levels of disability premium for us and convinced us of the value of the Matrix absence management approach. We believe the Matrix acquisition catapults Delphi into a leading position in the integrated disability market and will be an extremely valuable asset as we expand our efforts in employee benefits. The existing Matrix client base is in high growth businesses with elite employees and progressive management: in short, ideal clients.''

David F. Nolan, chairman and chief executive officer of Matrix, comments, "This strategic merger with Delphi will provide Matrix with access to greater resources and will allow us to accelerate our growth nationally. The success of our relationship with Delphi over the past year confirmed for us that the best way to take advantage of the growing market opportunities for our integrated disability services is through this transaction.''