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INDEPENDENT INSURANCE GROUP SUCCEEDSIN EXITING FLORIDA HOMEOWNERS MARKET

 JACKSONVILLE, Fla., Jan. 5 /PRNewswire/ -- Independent Insurance Group, Inc. (NASDAQ: INDHK) today announced to shareholders the culmination of its plans to exit non-Home Service homeowners lines of business in Florida. The letter to shareholders from Chairman of the Board Wilford C. Lyon Jr., follows.
 Continuing Independent's ongoing action to communicate with its shareholders, I am writing to inform you of the Company's success in continuing its withdrawal from non-Home Service residential property lines of business in Florida. In every other state the wind-down of all non-Home Service property/casualty lines is already proceeding on target, as I recently corresponded.
 Early in 1993 we initiated our wind-down of non-Home Service property/casualty lines. However in Florida, the legislature declared an industry-wide moratorium on non-renewing homeowners policies in the state. With the approval of the Florida Department of Insurance and the Florida Residential Property and Casualty Joint Underwriting Association (FRPCJUA), mutually agreeable terms have now been reached so that the FRPCJUA will reinsure this residential property book of business until the run-off is completed.
 In reaching this agreement, Independent accomplishes the transfer of risk on this book of business, reduces its market share in the state and avoids the high cost of catastrophe reinsurance associated with the lines in today's tight reinsurance market. Additionally, it further enhances our announced plans to focus on the strength and more profitable lines of business of our core Home Service operations. The premium payment itself is not anticipated to significantly impact operations. This is due to the fact that the Company previously recorded a one-time restructuring charge of $10 million in the second quarter of 1993 associated with our announcement to exit all non-Home Service lines of business in our property/casualty subsidiaries.
 Independent Insurance Group, Inc., is a Jacksonville, Fla.-based holding company whose subsidiaries provide an extensive range of insurance services. Its history traces to 1920. Its core business is the operations of the Independent Life Insurance Company, a recognized leader in the Home Service insurance industry. Home Service property and casualty premiums are written through the company's property and casualty subsidiaries. A multi-line of products are marketed primarily in the Southeast through the company's own Home Service field force.
 -0- 1/5/94
 /CONTACT: B. Lane Bussey III of Independent Insurance Group, 904-358-5470/
 (INDHK)


CO: Independent Insurance Group, Inc. ST: Florida IN: INS SU:

AW -- FL004 -- 9179 01/05/94 08:29 EST
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Publication:PR Newswire
Date:Jan 5, 1994
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