Cavoores Named C.O.O. of Reliance Insurance Group.

Business Editors

NEW YORK--(BUSINESS WIRE)--April 20, 2000

Reliance Group Holdings, Inc. (NYSE: REL) announced that John P. Cavoores has been named chief operating officer of Reliance insurance group, the company's consolidated insurance operations. He reports to Terry Van Gilder, president and chief executive officer of Reliance Insurance Group.

Previously, Mr. Cavoores was president and chief executive officer of National Union Insurance Company, a major subsidiary of American International Group (AIG). At National Union, Mr. Cavoores developed new products in partnership with brokers, major financial institutions and private companies, created AIG's High Tech division and introduced E-Writer, an internet based quote, issue and bind facility. Prior to joining AIG in 1998, Mr. Cavoores spent 19 years at Chubb Insurance Group. Among the positions he held at Chubb were chief underwriting officer and executive vice president, and managing director responsible for all overseas operations.

Mr. Cavoores received a B.A. degree in economics from Holy Cross College in Worchester, Mass in 1979. He resides in Monmouth Hills, NJ with his wife and three children.

Mr. Van Gilder said, "John Cavoores is a valuable addition to our company. He brings Reliance more than two decades of underwriting excellence, new product development capabilities, strong management leadership and deep relationships with the brokerage and risk management communities."

Mr. Cavoores said, "Reliance is well known and well respected in the marketplace for its expertise and innovation in e-commerce and key lines of business such as risk management, financial products, international and middle market coverages. I'm very pleased to be part of the team that will be positioning Reliance for its future growth and success in the United States and around the world."

Reliance Group Holdings, Inc.(http://www.rgh.com), headquartered in New York City, has specialized property and casualty insurance operations and an information technology consulting company. Reliance Group's total 1999 revenues were $3.2 billion, and assets at year-end were $14.6 billion.