American Eagle Group, Inc. announces formation of specialty Marine Division.

DALLAS--(BUSINESS WIRE)--Nov. 29, 1994--American Eagle Group, Inc. announced today that it has initiated operations of a newly formed specialty Marine Division, which will begin to generate revenues during the first quarter of 1995.

The primary market focus of this division will be marine hull and liability coverage for private yachts ranging in value from $30,000 to $500,000. The geographic scope of this product offering will be nationwide, with emphasis on inland lakes and waterways. Additionally, concentrations of insured vessels in ocean areas exposed to windstorm will be closely monitored and controlled.

The operations of this division will be headquartered in Baltimore, Maryland. Suzanne Solomon, formerly with The Maryland Insurance Group, has been named as Vice President in charge of the Marine Division. Mrs. Solomon brings a successful history of over 15 years of managing and marketing specialty marine insurance products. Joining Mrs. Solomon, as Marine Manager, will be Greta Flinn, also formerly with The Maryland Insurance Group. The Marine Division will report to George F. Cass, American Eagle Group's President and Chief Operating Officer. The team of these individuals, individually and collectively, brings substantial expertise in marine insurance to the new operation at American Eagle.

The specialty marine products will be marketed through established specialty marine insurance agents. Each of these agents has a lengthy history and proven performance in providing specialty insurance coverages to the private yacht marketplace. It is currently anticipated that this specialty agent group will be limited to approximately 20 major marine agents nationwide.

M. Philip Guthrie, Chairman and CEO of American Eagle Group, stated: "We are extremely pleased and excited about this opportunity to extend American Eagle's strategy and expertise in specialty market niches to the marine market, which shares many common characteristics with our aviation operations. Not only will we be providing our customers with an experienced management team in the marine area, but we will provide this service through a proven network of specialty marine insurance agents, of whom some are among our most important and experienced specialty aviation agents."

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, franchised new auto dealers, selected artisan contractors and private yachts. The company's business is organized in three divisions, the Aviation Division headquartered in Dallas, Texas, the Property & Casualty Division headquartered in Sacramento, California, and the Marine Division headquartered in Baltimore, Maryland.

CONTACT: American Eagle Group, Inc., Dallas

              M. Philip Guthrie, 214/448-1460
              Richard M. Kurz, 214/448-1477