Millers Completes Phoenix Indemnity Purchase

Business Wire, Sept 20, 1999

OMAHA, Neb.--(BUSINESS WIRE)--Sept. 20, 1999--

Millers American Group, Inc. and Acceptance Insurance Companies Inc. (NYSE: AIF) announced today that Millers has completed its purchase of Acceptance's non-standard automobile business, including Phoenix Indemnity Insurance Company. Final regulatory approval was received earlier this month and the transaction was concluded pursuant to the parties' definitive agreement announced May 11, 1999.

Phoenix Indemnity employs approximately 125 people in its Phoenix, Arizona home office. Through independent agents it provides non-standard auto insurance primarily in Arizona and several surrounding states.

In 1998, Phoenix had gross earned premium of approximately $46 million.

Millers is a diversified holding company based in Fort Worth, Texas with non-standard auto and other insurance and insurance services interests.

Kenneth C. Coon, Acceptance Chairman and CEO noted, "Completion of this transaction reflects our continued focus on business's which have the greatest potential profit for our stockholders."

Acceptance is an A- rated property and casualty insurance company concentrating on writing specialty coverages throughout the Untied States not generally emphasized by standard insurance carriers. With the completion of this sale, Acceptance's operations will be conducted through five insurance subsidiaries and one insurance agency. Acceptance selects underwriting specialties within the property and casualty industry that provide a diversified portfolio of products, with the goal of producing underwriting results better than the industry average.