CORRECTING and REPLACING Farmers Insurance Lowers Rates for Kansas Homeowners.

Business Editors

Correction by...Farmers Insurance Group

KANSAS CITY, Kan.--(BUSINESS WIRE)--July 22, 2003

In BW5695, issued July 17, 2003, (KS-FARMERS-INSURANCE) Farmers Insurance Lowers Rates for Kansas Homeowners, headline should read xxx Auto Customers (sted Homeowners). Lede sentence should read xxx auto (sted homeowners). First graph, second sentence should be removed.

The corrected release reads:

FARMERS INSURANCE LOWERS RATES FOR KANSAS AUTO CUSTOMERS

Farmers Insurance Group(R) is pleased to announce they are reducing auto rates in the state of Kansas. Farmers customers in Kansas will see a rate decrease of .7 percent effective July 1st. Farmers has also expanded the number of customers that qualify for their best rate.

"Improved loss results and a favorable regulatory environment have allowed us to pass the savings on to the customer," said Frank Soldano, Farmers' Kansas State Executive Director. "We are pleased we can give something back to our customers. This rate reduction plus the increased discounts will add up to more savings for our customers," added Soldano.

For example, customers that live in the Topeka area will see up to a 21.7% reduction. Customers that live in the Kansas City area will see up to an 8.4% reduction, and customers in Emporia will see up to a 13% reduction.

Farmers Insurance is the third-largest insurer in Kansas, with over 235,000 autos and 80,000 homes insured. Farmers is the largest insurance industry employer in the state, with over 1,800 employees. Farmers also has one of only two national Claims Processing Centers located in Olathe.

Customers are encouraged to call their agent if they have questions about the rate reduction and new discount.

Farmers Insurance Group of Companies(R) is the nation's third-largest Personal Lines Property & Casualty insurance group. Headquartered in Los Angeles and doing business in 41 states, the insurers comprising the Farmers Insurance Group of Companies provide Homeowners, Auto, Business, Life Insurance and financial services to more than 10 million households through 17,000 exclusive and independent agents and district managers. For more information about Farmers, visit our Web site at www.farmers.com. This is Farmers' 75th year serving America's families and businesses.