Amica Insurance Reports 2001 Earnings.

Business Editors

LINCOLN, R.I.--(BUSINESS WIRE)--Feb. 14, 2002

Amica Mutual Insurance Company today reported a successful year in 2001, despite the deterioration of the overall economy. The Company reported just over $40 million in net income for the year ending December 31. This compares to $78 million in 2000.

"We are very proud of this achievement during a trying year for our country, our economy, and our industry," said Amica President and CEO Thomas A. Taylor. "We attribute our success to sound underwriting, carefully measured growth, a conservative and prudent investment strategy, and above all, our ultimate goal of maintaining the best customer service in the industry."

Amica's overall marketing and sales strategies helped increase voluntary auto policies by 33,495, homeowner policies by 27,084, and personal excess liability policies by 7,453 in 2001. "Growth of our policyholder base has been a key goal over the past few years," said Taylor. "Amica has been proactive in reaching out to new markets across the country via television, radio, and the Internet. This exposure has ultimately led to the addition of thousands of new customers."

In spite of decreasing interest rates, Amica was able to increase its investment income by more than $1.3 million over 2000, for a total of $112.4 million in 2001. Furthermore, the Company realized net capital gains of $74.8 million in 2001, as compared to $60.8 million in 2000. Dividends to policyholders amounted to $120.8 million, representing a 12.7 percent return to policyholders on premiums earned. Total assets for the year amounted to $2.9 billion, a $110.7 million decrease from 2000.

In a difficult year, Amica's conservative financial strategy, commitment to policyholders, and core values provided strength and stability, proving once again that Amica can "weather the storm." And Amica also remained highly regarded as an industry leader. For a second year in a row, Amica was ranked "Highest in Customer Satisfaction Among National Auto Insurers" by J.D. Power and Associates in its 2001 National Automotive Insurance Satisfaction Study(SM). This study was based on responses from 13,393 automotive insurance policyholders. Amica's homeowners insurance also received five out of five "Power Circles" for every category listed in the J.D. Power and Associates Consumer Center ratings. More information is available on the company's Web site, www.jdpower.com.

A.M. Best Company once again rated Amica A++, its highest rating. Standard and Poor's again rated Amica AA+, citing the Company's overall financial strength. And for a seventh consecutive year, the Ward Financial Group counted Amica in its top 50 property and casualty insurers among over 3,000 evaluated.

Amica Mutual Insurance Company, the nation's oldest mutual insurer of automobiles, was founded in 1907. The company, with corporate headquarters in Lincoln, Rhode Island, is a national writer of automobile, homeowners, marine, and personal excess liability insurance. Life coverage is available through Amica Life Insurance Company, a wholly owned subsidiary. Amica employs nearly 3,500 people in 42 offices across the country.