Frontier Insurance Group, Inc. Announces Resignations of Three Executive Vice Presidents

Business Wire, March 2, 2001

Business Editors

ROCK HILL, N.Y.--(BUSINESS WIRE)--March 2, 2001

Frontier Insurance Group, Inc. (Frontier) (OTCBB-FTER) announced today the resignations of Patrick Kenny, Executive Vice President and Chief Financial Officer, Douglas Moat, Executive Vice President and Richard Seyffarth, Executive Vice President and Chief Investment Officer. All are members of Frontier's Executive Management Group. Doug Moat will continue to serve as a member of Frontier's Board of Directors.

Harry Rhulen, President and CEO stated, "As a result of the reduced level of insurance business and the closing of our statutory year-end process it is necessary to streamline the executive team. Pat, Doug and Richard will assist with the transfer of their responsibilities over the next several weeks. They have all made valuable contributions to the company and we wish them well in their future endeavors."

Frontier is an insurance holding company, which through its subsidiaries, is a national underwriter and creator of specialty insurance products serving the needs of insureds in niche markets.

Special Note Regarding Forward-Looking Statements

This release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 (the "Securities Act") and Section 21E of the Securities Exchange Act of 1934 (the "Exchange Act") which are not historical facts and involve risks and uncertainties that could cause actual results to differ materially from those expected and projected. The words "believes," "anticipates," "expects" and similar expressions are intended to identify forward-looking statements which include, but are not limited to statements concerning recovery of losses under the reinsurance agreement and the long-term economic impact of reserve strengthening. Such risks and uncertainties include, but are not limited to, the following: (i) general economic conditions; (ii) conditions specific to the property and casualty insurance industry, including its cyclical nature, regulatory changes, rating agency policies and practices, competitive factors and claims development and the impact thereof on loss reserves, the Company's reserving policies and the adequacy of the Company's reinsurance programs; (iii) developments in the securities markets and the impact thereof on the Company's investment portfolio; (iv) changes in generally accepted accounting principles; and (v) that Frontier's reinsurer will meet obligations of the reinsurance agreement or will agree with Frontier on items to be recovered. Accordingly, there can be no assurance that the actual results will conform to the forward-looking statements in this release.