ACCEL International Corp. re-elects directors, approves increase in authorized shares of common stock and adopts stock incentive plan at annual meeting; terms of proposed rights offering to stockholders announced; board of directors promotes officers.

DUBLIN, Ohio--(BUSINESS WIRE)--June 12, 1996--ACCEL International Corp. (NASDAQ/NMS:ACLE) reported that all directors were re-elected at the annual meeting of stockholders held June 11, 1996.

In addition, the company's Certificate of Incorporation was amended to increase the total number of authorized shares of common stock, 10 cents par value, from 10 million to 15 million and the adoption of a new stock incentive plan was approved.

Thomas H. Friedberg, chairman, president and CEO, reported that a registration statement had been filed with the Securities and Exchange Commission ("Commission") on May 28, 1996, to effect the registration of up to seven million shares of common stock in order to offer subscription rights to stockholders of the company. The registration statement is currently pending review by the staff of the commission.

Friedberg indicated that the subscription rights, to be issued on the basis of one right for each share held, are subject to the following terms as established by the board of directors on June 10, 1996: the record date for stockholders to receive rights shall be the close of business on June 18, 1996, rights holders will be able to purchase one and one-half shares of common stock for each right issued, and the subscription price shall be $2.25 per whole share.

Friedberg noted the offering permits the outstanding 10 1/8% Subordinated Notes of the company to be tendered for cancellation as consideration (in lieu of cash) for the purchase of shares of common stock. The company expects that a majority of the Subordinated Notes will be tendered during the offering.

The net cash proceeds from the offering will be used for general corporate purposes, including, investments in or advances to Acceleration Life Insurance Co. and Acceleration National Insurance Co., cash redemption of Subordinated Notes remaining outstanding, expansion of the recently introduced insurance programs and development of new programs.

The board of directors re-elected the current officers of the company. In addition, William E. Merritt Jr., Fort Worth, Texas, was elected senior vice president-claims of the company and its subsidiaries.

The following promotions were also announced: Kurt L. Mueller, vice president and controller, was also elected treasurer of the company and its subsidiaries; Sharon A. Copeland was elected vice president-compliance; Julie A. Messing was elected vice president-marketing (with responsibility for credit insurance products); Frank L. Lowney, vice president-marketing (with responsibility for service contract/warranty products) and Richard L. Collins was elected assistant vice president-information systems.

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.

The registration statement referred to above relating to the rights offering filed with the Commission has not yet become effective. The common stock of the company may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This (press release) does not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the common stock of the company in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.

CONTACT: ACCEL International Corp., Dublin

Nicholas Z. Alexander, 614/764-7180