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Exhibit 99
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Florida Progress Corporation
Investor News - MCL Settlement
Analyst Contacts:
Greg Beuris (727) 820-5734
Lauran Willoughby (727) 820-5737
FLORIDA PROGRESS ANNOUNCES SETTLEMENT IN MCL LAWSUIT
ST. PETERSBURG, FLORIDA, SEPTEMBER 27, 2000 - Florida Progress officials
announced today that a settlement has been reached to resolve policyholder
litigation against Florida Progress relating to Mid-Continent Life Insurance
Company (MCL). Under the terms of the settlement, Florida Progress agreed to
contribute an additional $7.5 million plus fees and expenses towards protecting
policyholders in the event future premium rate increases are necessary. The
settlement is subject to approval by the Oklahoma County District Court. In
addition, the Court approved the rehabilitation plan proposed by Oklahoma
Insurance Commissioner Carroll Fisher, under which American Fidelity Assurance
Company would acquire MCL's policies.
The additional $7.5 million brings the total contribution by Florida Progress
to $17.5 million. Florida Progress had already agreed in October of 1999 to
contribute $10 million as part of a settlement with Commissioner Fisher in
connection with the rehabilitation plan he proposed. In the event future
premium rate increases are necessary, the $17.5 million, plus interest accrued,
will offset increases until the fund is exhausted.
"Although we have vigorously defended ourselves against this lawsuit,
negotiating a reasonable settlement is in the best interest of all parties and
removes some of the uncertainty surrounding Mid-Continent, which has gone on
for far too long," said Richard Korpan, chairman and CEO of Florida Progress.
"We also are very pleased that the Court approved Commissioner Fisher's
proposed rehabilitation plan. This means we are very close to resolving this
whole issue once and for all."
MCL was placed in temporary receivership in April 1997 at the request of then
Oklahoma Insurance Commissioner John Crawford, following his claims that the
company could not raise premiums to increase reserve funds. MCL is owned by
Progress Capital Holdings, a wholly owned subsidiary of Florida Progress
Corporation.
This news release contains a forward-looking statement concerning the
possibility of future premium increases and the use of funds set aside to
offset those increases. This statement involves risks and uncertainties that
could cause actual results or outcomes to differ materially from expectations.
Key factors that could affect the result include the outcome of legal
proceedings and the returns earned on funds set aside to offset potential
premium increases.
Florida Progress is a FORTUNE 500 diversified electric utility holding company
based in St. Petersburg, Florida. Its principal subsidiary is Florida Power,
one of the nation's leading electric utilities, committed to serving its 1.4
million customers in Florida with competitively priced energy, excellent
reliability, and outstanding customer service. Diversified operations include
rail services, marine operations, and coal mining and synthetic fuel
production.
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