DPIC Companies and CAMICO Mutual Insurance Company Conclude Agreement for Transfer of the Management of DPIC's Accountants Professional Liability Program.

Business Editors

MONTEREY and REDWOOD CITY, Calif.--(BUSINESS WIRE)--Dec. 27, 1999

DPIC Companies, Monterey, California, and CAMICO Mutual Insurance Company, Redwood City, California, announced today that DPIC affiliates will begin the transfer of the management of their accountants professional liability program to CAMICO, effective January 1, 2000.

In the first phase of the transition, CAMICO will assume responsibility for underwriting, advisory services, loss prevention educational programs, agency relations, and marketing of the program.

DPIC affiliates will continue to handle day-to-day claims handling, policy printing and premium collection for its agents and policyholders.

With the signing of the agreement, CAMICO and DPIC can now proceed with the plans they announced in August to form an alliance to strengthen the professional liability and risk management programs the companies provide to accountants.

"This alliance combines the strengths of our companies to enhance the delivery and scope of service to our policyholders," said Thomas Okarma, president and CEO of DPIC Companies. "Because CAMICO is dedicated exclusively to providing professional liability insurance and practice and risk management programs for CPAs, it has built considerable expertise to best meet the changing needs of the profession."

"The independent agent network that DPIC has built provides local accessibility and knowledge for the CPA firms to complement CAMICO's experience, focus and skill in servicing the CPA profession," added CAMICO President John A. Dodsworth, CPA.

Through the alliance, the organizations look forward to significantly improving their market presence. In combination they expect to gain the scale required to be a major influence on the market, expand the risk management services dedicated to CPAs, find expense savings through economies of scale, and leverage their expertise and resources to better serve this group of professionals.

DPIC Companies, a leading provider of professional liability insurance and risk management programs, is a member of the Specialty Division of Royal & SunAlliance USA. Royal & SunAlliance USA, Inc., is part of Royal & Sun Alliance Insurance Group plc, which operates in more than 55 countries worldwide and transacts business in more than 130 countries. Worldwide net premium income in 1998 was $16 billion with total assets of more than $100 billion. The company is listed on the London Stock Exchange.

CAMICO, a mutual insurance company, covers more than 3,000 accounting firms and 15,000 staff members in multiple states. Since 1994, CAMICO has returned over $20 million in original capital contributions, interest and dividends to its member-owners.