S&P’s Assigns White Hall Mutual Insurance Co. ‘R’ Rating

April 23, 2003

Standard & Poor’s has assigned its ‘R’ financial strength rating to
White Hall Mutual Insurance Co. (White Hall) after the Pennsylvania Insurance Department ordered the company to be liquidated on the basis of insolvency, effective April 10.

“In 2002, White Hall’s impaired financial position reflected emerging
loss development trends that required the company to record about $1 million in development on prior-accident-years losses and loss adjustment expenses,” said Standard & Poor’s credit analyst James Sung. “In addition, the company’s financial position was hurt by reinsurance rate increases that affected profit margins and unrealized capital losses attributable to the weak equity markets.”

White Hall is a 160-year-old property/casualty insurer based in
Doylestown, Pa.

In 2002, the company reported about $8 million in assets, $1
million in surplus, and $970,000 in net losses.

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