Republic Group of Insurance Companies Reports the Death of Its President and Chief Executive Officer, Bruce Milligan.

Business Editors/Obituary Editors

DALLAS--(BUSINESS WIRE)--Sept. 2, 2003

The Republic Group of Insurance Companies, of Dallas, is deeply saddened to report the death of the Company's President and Chief Executive Officer, Bruce Robert Milligan. Mr. Milligan, who was 47 and had been thought to be in excellent health, unexpectedly passed away at his home on Saturday, August 30, 2003.

As previously announced, Mr. Milligan was a member of an investor group that recently acquired the Company from Winterthur and re-established it as an independent enterprise, with Mr. Milligan continuing in his role as Republic's President and CEO.

Bruce W. Schnitzer, Chairman of Wand Partners, which organized the investor group, and who will serve as Republic's CEO during this transition, said: "All of us in the investor group are deeply shocked and saddened by the loss of our good friend and business partner, Bruce Milligan. Our deepest sympathies go out to his family, his wife Jan, and their two young sons, Joe and Mike. We know our profound sense of loss is shared by many others who knew and loved Bruce, including all the members of the Republic Group corporate family and Bruce's many friends throughout the insurance industry and the greater Dallas community.

"Bruce's goal to make Republic a strong and independent regional insurance company was one we fully shared, and was the foundation for the investors' decision to acquire Republic and own it under Bruce's capable leadership. We fully intend to honor Bruce's memory by continuing to operate the Company according to the high personal and professional standards he set as the Company's chief executive over the past eight years.

"Fortunately, the Republic Group is a strong and growing company with a sound business plan, a large and dedicated agency force, and an experienced management team with a long history at Republic. In the months ahead, serving as chief executive of Republic as well as continuing in my role as chairman of its holding company, I will work closely with the Company's management team to build on the strong foundation Bruce Milligan helped establish and to position Republic as one of the leading middle-market insurance companies serving Texas and the Southwest region."

Martin Cummings, chief financial officer of the Republic Group, said: "All of us who had the privilege of working with Bruce Milligan over the past fifteen years mourn his unexpected passing, and send our deepest condolences to his family. We are fortunate, however, that the Company is financially and operationally strong, and that we have, in Bruce Schnitzer, a seasoned senior executive we have been working with closely for several months, and who can step in, on short notice, as a member of the Republic Group management team and help us take the Company to the next level."

Mr. Milligan was active in both the insurance industry and his community. At the time of his death he was a member of several boards including the Alliance of American Insurers, Seguros Atlas (a large insurer based in Mexico City), Dallas National Bank, the Children's Education Fund of Dallas, and the Insurance Council of Texas. He was a member of the Board of Trustees of Augustana College and also served as President of the Association of Fire and Casualty Companies in Texas and as President of the Independent Lloyds of Texas.

Mr. Schnitzer, 59, a native of the Dallas/Fort Worth area, has extensive insurance industry investment and management experience. From 1977 to 1985, he was a senior executive with Marsh & McLennan, initially serving as Chief Financial Officer and a Director of Marsh & McLennan Companies, Inc. (NYSE: MMC) from 1977 to 1982 and from 1983 to 1985 as President and CEO of Marsh & McLennan, Incorporated, the world's largest insurance brokerage firm. Mr. Schnitzer has been a private equity investor since 1985, specializing in investments in insurance including serving as chairman of Acordia, Inc., a national insurance broker, until its sale to Wells Fargo in 2001 and as chairman of Dallas-based Old American County Mutual Insurance Company from 1992 to 1999.