American Eagle Group, Inc. announces change in A.M. Best Company rating.

DALLAS--(BUSINESS WIRE)--May 24, 1996--American Eagle Group, Inc. announced today that A.M. Best Company had lowered the rating of its principal subsidiary, American Eagle Insurance Company, to "B (Adequate)." The company expects that the rating revision, together with the effect of the previously announced withdrawal from certain lines and classes of business and tightening of underwriting guidelines in response to the underwriting issues resulting in the losses in the last two quarters, may somewhat reduce the company's written premiums in the future. However, it cannot be determined, at this time, whether the rating revision will have a material effect on underwriting profitability.

American Eagle continues on a path to raise additional capital for the purpose of increasing the capital and surplus of its insurance-company subsidiary.

The common stock of American Eagle Group, Inc. trades on the New York Stock Exchange under the symbol "FLI".

American Eagle Group, Inc. is an insurance holding company that, through its subsidiaries, markets and underwrites specialized property and casualty coverages in selected niche markets. These markets include general aviation, local and intermediate haul trucking, selected artisan contractors and private yachts. The company's business is organized in three divisions; the Aviation Division, headquartered in Dallas, Texas; the Property and Casualty Division, headquartered in Sacramento, California; and the Marine Division, headquartered in Baltimore, Maryland.

CONTACT: American Eagle Group, Inc.

M. Philip Guthrie, CEO, 214/448-1460, or

Richard M. Kurz, CFO,214/448-1477