Farmers Insurance Announces Hurricane Katrina Loss Estimates.

LOS ANGELES -- The Farmers Insurance Group of Companies announced today the estimated losses experienced by its Property and Casualty Insurance Exchanges from Hurricane Katrina.

Louisiana, Alabama and Mississippi are relatively new markets for Farmers whose market share in these states is approximately 3% in Homeowners and even less in Auto. Combined with Foremost we anticipate approximately 32,000 claims on which our National Catastrophe Team is making good progress already. As of today, the Farmers Exchanges' pre-tax losses after reinsurance are estimated between $200 and $220 million. Farmers said these losses are within expected total catastrophe losses for the year and will not affect its plans for surplus growth in the Insurance Exchanges in 2005.

Farmers advises its customers still suffering damage from the hurricane to immediately contact their agent or call the 24-hour claims hotline, 800-HelpPoint (1-800-435-7764).

"Our claims people have been doing a phenomenal job getting our customers back where they belong," said Jeff Beyer, senior vice president for Farmers. "We are doing all we can to expedite service at this time when our customers need us most," said Beyer.

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. Farmers is part of the global network of Zurich Financial Services. For more information about Farmers, visit our Web site at www.farmers.com.