Allenbrook Policy Processing Services (APPS) to Provide Outsourcing Services to Lexington Insurance Company.

Business/Technology Editors

LOWELL, Mass.--(BUSINESS WIRE)--March 23, 2000

Allenbrook Policy Processing Services (APPS) recently reached an agreement to provide outsourcing services to Lexington Insurance Company, a member company of American International Group, Inc. (AIG). Lexington Insurance Company is the largest United States surplus lines insurer, specializing in difficult-to-place property-casualty risks.

According to Vino Valle, Lexington Insurance Company Vice President of Operations, the company has been using Allenbrook's Phoenix product, customized for point of sale, for brokers in Florida. "We elected to use the Allenbrook product several years ago and have been pleased with the functionality of the Phoenix system," Valle said. "When we decided to convert from internal to external support, it was a good transition for Lexington to contract with APPS. The outsourcing service was attractive to us because we could utilize APPS technology resources and refocus our internal efforts on the primary business of insurance."

Formed in 1998 as a division of AMS Holding Group, APPS provides outsourcing to the property and casualty industry utilizing the Phoenix policy processing system. Darrell Kohel, President of Allenbrook Policy Processing Services said, "APPS presents an outsourcing solution to insurance companies interested in concentrating on their core competencies, while reducing expenses and controlling costs. This, coupled with leading edge technology and Phoenix, offers companies a first-class outsourcing alternative."

APPS outsourcing services are ideal solutions for a company's current processing needs or to facilitate entry into new markets. APPS can distribute processing, printing and inquiry to the point of sale through standard telecommunications or through the Internet, giving the flexibility to continue offering products utilizing existing distribution channels. Valle said, "At Lexington, we plan to utilize Internet access provided by APPS to enhance brokers' access to Lexington."

Kohel expects APPS to be fully operational for Lexington early this spring. "We are looking forward to a productive outsourcing relationship with Lexington, and to delivering a first-class outsourcing alternative to their brokers."

APPS is part of the AMS Holding Group family of companies, which is owned by a consortium of some of the world's leading insurers. Representing more than 15% of U.S property and casualty premiums, the consortium provides a strong financial foundation for the entire AMS organization, including Allenbrook Policy Processing Services.

Lexington Insurance Company is a member company of American International Group, Inc. (AIG), the leading U.S.-based international insurance organization and the largest underwriter of commercial and industrial insurance in the United States. Lexington Insurance Company is rated A++ (Superior) Class XII by A.M. Best Company.