Vesta Insurance Statement Confirms Reinsurance to Cover Hurricane Wilma

October 21, 2005

Birmingham, Ala.-based Vesta Insurance has confirmed it has complete reinsurance coverage if Hurricane Wilma results in claims in Florida.

“As previously disclosed, Vesta’s losses from Hurricanes Katrina and Rita did not reach the Company’s catastrophe excess of loss reinsurance program threshold. As previously disclosed in a Form 8-K filed July 7, 2005, Vesta and its subsidiary insurance companies including Florida Select, have excess of loss catastrophe reinsurance in effect, including the Florida Hurricane Catastrophe Fund, to cover gross losses in excess of $20.0 million up to approximately $218.0 million in Florida.

Additionally, the company has a 50 percent quota share reinsurance agreement in place. As a result, in the event that Hurricane Wilma impacts Florida, Vesta’s maximum potential net loss exposure would be approximately $10.0 million plus any additional reinstatement premiums which will depend on the size of the gross loss.”

Vesta is a holding company for a group of insurance companies that primarily offer property insurance in targeted states.

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