A.M. Best Upgrades Ratings of Most Members of Safeway Insurance Group; Assigns Rating to Safeway Direct Insurance Company

Business Wire, June 2, 2005

OLDWICK, N.J. -- A.M. Best Co. has upgraded the financial strength ratings to A (Excellent) from A- (Excellent) of Safeway Insurance Company (Illinois), Safeway Insurance Company of Alabama, Safeway Insurance Company of Georgia, Safeway Insurance Company of Louisiana and Oak Brook County Mutual Insurance Company (Texas). A.M. Best has also assigned a financial strength rating of A (Excellent) to Safeway Direct Insurance Company (California). All six companies are members of the Safeway Insurance Group (Safeway) (Westmont, IL). Additionally, A.M. Best has affirmed the financial strength rating of B (Fair) of Safeway Property Insurance Company (Safeway Property) (Florida). All ratings have a stable outlook.

These ratings reflect Safeway's excellent capitalization and sustained operating profitability. These positive rating attributes are derived from the group's underwriting discipline, multiple distribution channels and efforts to refine its infrastructure and operations. Despite catastrophe exposure and rising loss costs, Safeway has produced profitable operating results reflective of favorable loss experience and a competitive expense ratio. In addition, Safeway has benefited from price firming, which has been prevalent in the nonstandard automobile marketplace in recent years. As a result, surplus grew approximately 35% over the past two years.

Safeway provides nonstandard private passenger automobile insurance in nine states. Business is distributed through a network of approximately 2,000 independent agencies.

Safeway Property writes mobile home and inland marine insurance in Florida through approximately 150 independent agents.

For Best's Ratings, an overview of the rating process and rating methodologies, please visit http://www.ambest.com/ratings.> For current Best's Ratings, independent data and analysis on more than 3,000 individual property/casualty companies and A.M. Best groups, please visit http://www.ambest.com/pc.> A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. For more information, visit A.M. Best's Web site at http://www.ambest.com.