ACCEL International Corp. Reports 1997 Second Quarter Results -- Operating Profits Increase.

DUBLIN, Ohio--(BUSINESS WIRE)--Aug. 18, 1997--Second Quarter Results--ACCEL International Corp. (NASDAQ/NMS:ACLE) today announced net income of $378,000 or 4 cents per share, for the three months ended June 30, 1997, compared with net income of $46,000 or 1 cent per share for the same period in 1996.

This represents a 68 percent increase over first quarter net income.

Income before income taxes amounted to $408,000 and $14,000 for the second quarters of 1997 and 1996, respectively. For the second quarter of 1997, realized pretax gains (losses) on the sale of investments amounted to ($9,000), compared to ($13,000) for the same period in 1996.

Gross premiums written totaled $19.1 million for the second quarter of 1997, compared with $17.2 million for the second quarter of 1996.

Six Month 1997 Results -- For the six month period ended June 30, 1997, net income was $603,000, or 7 cents per share, compared with net income of $92,000, or 2 cents per share for the same period in 1996. Income before income taxes amounted to $643,000 and $52,000 for the six month period ended June 30, 1997 and 1996 respectively.

Gross premiums written for the six months ended June 30, 1997 and 1996 were $32.5 million and $33.9 million, respectively. Realized pre-tax gains on the sale of investments were $65,000 and $275,000 for the same six month periods.

Commentary -- Thomas H. Friedberg, chairman of the board, president and chief executive officer of ACCEL, commenting on the results said, "We are pleased to report profits from operations for the second consecutive quarter with all product lines contributing to our results. Premium writings from our new property and casualty programs increased by $4.65 million over last year to total $14.95 million in the first six months of 1997. We continue to seek new opportunities consistent with our overall objective of controlled profitability."

ACCEL International Corp. is a Dublin based holding company that provides specialty insurance products and services through its insurance subsidiaries operating throughout the United States. -0-

                       ACCEL International Corp. and Subsidiaries

                     Unaudited Consolidated Statements of Operations

                           Three Months Ended     Six Months Ended
                                 June 30,             June 30,
                              1997     1996        1997       1996
                              ____     ____        ____       ____

                        (Thousands of dollars, except per share data)

REVENUE:
  Gross premiums written  $ 19,146   $ 17,169    $ 32,545  $ 33,865
  Less reinsurance ceded     6,704      4,754      10,138     9,254
                          ________  _________   _________  _________

    Net premiums written    12,442     12,415      22,407     24,611

  Decrease (increase) in
   unearned premium
   reserves                    165      (917)         751    (3,048)
                          ________  _________   _________  _________
     Premiums earned        12,607     11,498      23,158     21,563

  Net investment income:
    Interest and dividends   1,176      1,057       2,331      2,059
    Realized gains (losses)    (9)       (13)          65        275
  Service fees on extended
   service contracts           972        638       1,517      1,223
  Other income                  88         36         150        272
                          ________  _________   _________  _________
                            14,834     13,216      27,221     25,392
                          ________  _________   _________  _________

BENEFITS AND EXPENSES:
  Policy benefits            6,228      5,594      12,242     10,685
  Commissions and selling
   expenses                  6,424      6,847      11,198     12,055
  Reinsurance expense
   recovery                  (662)      (945)     (2,883)    (1,619)
  General and
   administrative            1,948      1,656       3,814      3,359
  Taxes, licenses and fees     692        357       1,090        871
  Interest                     357        548         713      1,088
  Decrease (increase) in
   deferred policy
   acquisition costs         (561)      (855)         404    (1,099)
                          ________   ________   _________  _________
                            14,426     13,202      26,578     25,340
                          ________   ________   _________  _________

    INCOME BEFORE FEDERAL
    INCOME TAXES               408         14         643         52

  Federal income taxes:
     Current Expense           303        393         486        513
     Deferred benefit         (273)      (425)       (446)      (553)
                          ________   ________   _________  _________
                                30        (32)         40        (40)
                          ________   ________   _________  _________

     NET INCOME           $    378   $     46   $     603   $     92
                          ________   ________   _________  _________
                          ________   ________   _________  _________

  Per Common Share:
    Net income            $   0.04   $   0.01   $    0.07   $   0.02
                          ________   ________   _________  _________
                          ________   ________   _________  _________
  Weighted average
   number of common
   shares outstanding    8,603,742  4,506,432   8,603,742  4,483,575
                         _________  _________   _________  _________
                         _________  _________   _________  _________

CONTACT: ACCEL International Corp.

Nicholas Z. Alexander, 614/764-7180

Fax: [phone]