WEISS RATINGS

PALM BEACH GARDENS, Fla., January 13, 2003 - Property and casualty insurers suffered a staggering $6.6 billion decline in investment gains during the first six months of 2002, to $18.1 billion from $24.7 billion during the same period in 2001, according to Weiss Ratings, Inc., the nation's leading independent provider of ratings and analyses of financial services companies, mutual funds, and stocks. Driving the decline was a $5.8 billion reduction in capital gains, from a $5.4 billion gain in the first half of 2001 to a $475 million capital loss during the same period in 2002.

Vulnerable insurers (those rated D+ and lower by Weiss) reporting the largest capital losses during the first half of 2002 were:

"The faltering economy and a rash of corporate bond defaults have pounded the industry's investment portfolio, severely reducing a primary source of income," said Melissa Gannon, vice president of Weiss Ratings, Inc. "If investment losses continue at or near this pace, there will likely be no imminent rate relief for consumers as companies are forced to seek profits from their underwriting business."

Unlike life and health insurers, property and casualty insurers typically do not profit from their core underwriting business but rather rely on investment income and capital gains to cover those losses and then some. The decline in capital gains from June 30, 2001 to June 30, 2002 represents a severe reduction in a primary source of income for the industry. For the first six months of 2001, capital gains represented 142% of the industry's overall profits. However, for the same period in 2002, there were no capital gains to contribute to profits.

Profits Jump 42 Percent During First Six Months of 2002

Buoyed by rising premiums, underwriting losses improved by $6.9 billion to help offset the decline in investment income. Consequently, insurers enjoyed a 42.1 percent increase in earnings, from $3.8 billion in the first six months of 2001 to $5.4 billion for the same period in 2002.

Insurers reporting the largest net income for the first six months of 2002 were:

"The industry must balance the need to offset declining investment income against the market's demands for rate relief, particularly following the passage of the terrorism backstop legislation," added Ms. Gannon.

Notable Upgrades and Downgrades

Among the 2,260 property and casualty insurers reviewed by Weiss, three were upgraded and 28 were downgraded. Companies upgraded were:

Attorneys Liability Assurance Society, Inc. (Vt.)	from D+ to C-
Cherokee Insurance Company (Mich.)	from D+ to C-
Primetime Medical Insurance Co. (Ohio)	from E to D+

Notable downgrades include:

Gerling Global Reins Corp. of America (N.Y.)	from C to C-
Prudential Property & Casualty Insurance Co. (Ind.)	from C+ to C
Miix Insurance Company (N.J.)	from D- to E+

The Weiss Safety Ratings are based on an analysis of a company's risk-adjusted capital, reserve adequacy, profitability, liquidity, and stability. The latter category combines a series of factors including asset growth, premium growth, strength of affiliate companies and risk diversification.

Weiss issues safety ratings on more than 15,000 financial institutions, including insurance companies, banks, and brokerage firms. Weiss also rates the risk-adjusted performance of more than 11,000 mutual funds and more than 7,000 stocks. Weiss Ratings is the only major rating agency that receives no compensation from the companies it rates. Revenues are derived strictly from sales of its products to consumers, businesses, and libraries.

Consumers needing more information on the financial safety of a specific company can purchase a rating and summary analysis for as little as $7.95 through www.WeissRatings.com, or starting at $15 by calling 800-289-9222.