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FOUNDATION HEALTH TO ACQUIRE WORKERS' COMPENSATION COMPANY

 RANCHO CORDOVA, Calif., April 12 /PRNewswire/ -- Foundation Health Corporation (NYSE: FH) today announced that it has reached a definitive agreement to acquire Business Insurance Corporation (BICO) and its operating subsidiary, California Compensation Insurance Company (CalComp), a leading California specialty workers' compensation insurance carrier.
 The 60-year-old, privately held Novato-based company insures approximately 6,000 California employers and had direct written workers' compensation premium revenues of approximately $300 million in 1992 before reinsurance and $175 million net of reinsurance. CalComp will retain key management and operate from its present seven California locations.
 Foundation Health will pay approximately $64 million in cash for BICO, which is approximately 1.1 times BICO's book value at Dec. 31, 1992. The acquisition is subject to approval of the California Department of Insurance and certain other conditions. The transaction is expected to close by late summer.
 "We continue to pursue our strategic plan to develop a full spectrum of integrated group benefit products that will be part of our managed care portfolio," said Daniel D. Crowley, president and chief executive officer of Foundation Health. "CalComp is an excellent company and the acquisition provides us with the opportunity to create a 24-hour insured product in addition to the managed health care and administrative services that we already provide for self-insured workers' compensation clients."
 Crowley added: "CalComp has a solid history of revenue and profit growth, and we have identified a number of efficiencies and cross- selling opportunities that we can pursue as a result of the acquisition."
 Donald W. Marken, president of BICO and CalComp, stated: "Foundation Health will provide the capital resources and managed care expertise that will enable us to continue toward our objective of being the leader in the California workers' compensation insurance industry."
 Foundation Health is a leading managed health care company serving industry and government. Through its HMO, specialty services and government contracting subsidiaries, the company administers a variety of health benefits for more than 3 million eligible individuals.
 -0- 4/12/93
 /CONTACT: Jeffrey L. Elder, senior vice president-CFO, 916-631-5381, or Kurt D. Davis, director-investor relations, 916-631-5288, both of Foundation Health/
 (FH)


CO: Foundation Health Corporation; Business Insurance Corporation ST: California IN: INS SU: TNM

SB -- SF007 -- 4566 04/12/93 07:01 EDT
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Publication:PR Newswire
Date:Apr 12, 1993
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