PAULA Financial Announces Continued Growth of Distribution Business With Completion of Insurance Agency Acquisition

Business Wire, May 7, 1999

PASADENA, Calif.--(BUSINESS WIRE)--May 6, 1999--

PAULA Financial (Nasdaq:PFCO) Thursday announced that its insurance agency, Pan American Underwriters, has completed its previously announced acquisition of the Sacramento and Stockton, Calif., offices of CAPAX Management & Insurance Services.

"This acquisition will allow us to continue to grow our income from non-risk sources and expands our control of business in rural markets," said Chairman and CEO Jeff Snider. "Our agency distribution business is a major part of our strategy. Going forward, it will make a more noticeable impact on the bottom line."

PAULA Financial is a California-based specialty underwriter and distributor of commercial insurance products, which, through Pan American Underwriters, is one of the largest insurance agencies specializing in workers' compensation products and services for the agribusiness industry.