Amwest Insurance Group Inc. Announces First-Quarter Results.

CALABASAS, Calif.--(BUSINESS WIRE)--April 30, 1998--Amwest Insurance Group Inc. (AMEX:AMW)(PCX:AMW) reported net income of $2,056,000 or 54 cents per share for the three months ended March 31, 1998, as compared with net income of $1,785,000 or 49 cents per share for the three months ended March 31, 1997.

1997 amounts have been restated to reflect the 10 percent stock dividend paid to stockholders of record as of March 31, 1998.

Gross premiums written increased 36 percent to $29,342,000 for the three months ended March 31, 1998, as compared with $21,610,000 for the three months ended March 31, 1997. Earned premiums also increased to $27,124,000 in the first quarter of 1998 from $21,446,000 in 1997, an increase of 26 percent.

Richard H. Savage, chairman and co-chief executive officer, commented: "The continued strong growth in premiums is now starting to have a significant positive impact on the earned premiums of the group. In particular, the surety division continues to benefit from our decisions to regionalize our contract underwriting process to better serve our customers and make more informed underwriting decisions.

"During the first quarter, our surety division saw an increase in written premiums of $6,924,000 or 44 percent over the preceding year. Earned premiums for the division also increased significantly to $21,931,000 or 36 percent over 1997. Just as importantly, the loss ratio for our surety division was 22 percent for the quarter vs. 25 percent for the first quarter of 1997.

"Property and casualty division written premiums increased $808,000 or 14 percent over 1997, primarily due to the commencement of one specialty general agency program handled by our Interstate Program Managers (IPM) subsidiary.

"Over the next several quarters, we expect to see a more substantial increase in premiums as additional programs come on line. As we have previously indicated, until such time as these programs are effective, the expense ratio of the property and casualty division will remain at higher than acceptable levels due to the expenses incurred in creating the specialty unit and other internal expenses required to grow this business."

Amwest is a Calabasas-based insurance holding company underwriting specialty property and casualty insurance through Amwest Surety Insurance Co., Condor Insurance Co. and Far West Insurance Co. -0-

Certain statements contained in this news release regard matters that are not historical facts and are forward-looking statements. Because such forward-looking statements include risks and uncertainties, actual results may differ materially from those expressed in or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to: a decline in demand for contract bonds, the ineffectiveness of the aforementioned programs, a deterioration in results of the company's other products, or a general economic decline. The company undertakes no obligation to release publicly the results of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. -0- e-mail:[e-mail] -0-

             Amwest Insurance Group Inc. and Subsidiaries
            (Amounts in thousands, except per share data)

                              Consolidated Statements of Operations
                                         Three months ended
                                              March 31,
                                         1998          1997

Gross premiums written                $ 29,342      $ 21,610
Net premiums earned                   $ 27,124      $ 21,446
Losses and loss adjustment expenses      8,908         7,068
Policy acquisition costs                14,146        10,821
General operating costs                  3,155         2,903
  Total underwriting expenses           26,209        20,792
  Underwriting income                      915           654

Interest expense                          (405)         (401)
Net investment income                    1,577         1,681
Net realized gains                         820           637
  Income before income taxes             2,907         2,571
Provision for income taxes                 851           786

  Net income                          $  2,056      $  1,785

Net earnings per common share
  Basic                               $   0.54      $   0.49
  Diluted                             $   0.53      $   0.48

                        Consolidated Balance Sheet Information

                             March 31, 1998      Dec. 31, 1997

Total assets                    $195,378            $190,519
Total liabilities                134,954             133,340
Total stockholders' equity        60,424              57,179
  Book value per share          $  15.82            $  15.05

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             Amwest Insurance Group Inc. and Subsidiaries
                        (Amounts in thousands)

                     Summary of Premiums and Losses by Product Line
                                   Three months ended
                                        March 31
                                  1998         1997

Contract
   Gross premiums written        12,474        9,619
   Net premiums earned           13,388       11,077
   Losses and loss
     adjustment expenses          3,735        3,456
   Loss and loss
     adjustment expense
     ratio                          28%          31%

Commercial Surety
   Gross premiums written         7,277        3,260
   Net premiums earned            5,757        2,305
   Losses and loss
     adjustment expenses            969          568
   Loss and loss adjustment
     expense ratio                  17%          25%

Court
   Gross premiums written         2,883        2,831
   Net premiums earned            2,786        2,739
   Losses and loss
     adjustment expenses            204          (66)
   Loss and loss adjustment
     expense ratio                   7%          -2%

Total Surety
   Gross premiums written        22,634       15,710
   Net premiums earned           21,931       16,121
   Losses and loss
     adjustment expenses          4,908        3,958
   Loss and loss adjustment
     expense ratio                  22%          25%

Property & Casualty
   Gross premiums written         6,708        5,900
   Net premiums earned            5,193        5,325
   Losses and loss
     adjustment expenses          4,000        3,110
   Loss and loss adjustment
     expense ratio                  77%          58%

Total Company
   Gross premiums written        29,342       21,610
   Net premiums earned           27,124       21,446
   Losses and loss
     adjustment expenses          8,908        7,068
   Loss and loss adjustment
     expense ratio                  33%          33%

CONTACT: Amwest Insurance Group Inc., Calabasas

Steven R. Kay, 818/871-3501