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RUSSELL MILLER STATEMENT ON TRANSAMERICA'S INTEREST IN MILLER'S PROPERTY CASUALTY INSURANCE SUBSIDIARY

 SAN FRANCISCO, Nov. 19 ~PRNewswire~ -- Reacting to the proposed spin off to the public of Transamerica Corp.'s (NYSE: TA) (TA) majority interest in its property casualty insurance subsidiary, Russell R. Miller, chairman, Russell Miller, Inc. insurance industry specialty investment bankers, said, "TA being knowledgeable owners know they have to face some difficult issues on its way to the public market. TA Corp. feels that the public will be more willing to pay the price they want than those knowledgeable insurance industry pros who made them offers that they have rejected."
 Miller said "that TA Corporation is a responsible and alert member of the financial community and undoubtedly will explain all the important issues in an open and positive way. They are at least temporarily going to be a principal investor following a public offering and will make sure their new public partners are no less informed than they.
 "A primary issue in any negotiation for any insurance company is how the existing reserves will be guaranteed by the seller. This affects what price anyone would be willing to pay and is central to getting a transaction done. TA says they will 'provide limited reserve guarantees on certain lines of business.' That means they apparently won't provide unlimited guarantees on some lines of business. That is not unusual in a negotiated context.
 "In a public offering I'm sure these concerns will be thoroughly addressed," Miller said.
 "TA has been writing some of its business through managing general agencies, some specific niche business that is traditionally hard to write. When underwriting decisions are made at the MGA level, the issuing company tends to get high cash flow and low operating expense ratios. That kind of business needs very close scrutiny. The reserve setting needs great sophistication and accuracy.
 "By sweeping out the senior management, TA is saying implicitly that they don't have confidence in the team of people who built the company they are selling. The new team, experienced in investment banking, life insurance and property casualty business, will have its hands full as they take on a large writer of California workers compensation business. We all know from the most recent special session of the California legislature that workers compensation needs top to bottom restructuring."
 For additional information: Alice Berreyesa, Director of Marketing, (415) 956-7474.
 -0- 11~19~92
 ~CONTACT: Russell Miller, chairman of Russell Miller, 415-956-7474~
 (TA)


CO: Russell Miller Inc.; Transamerica Corp. ST: California IN: INS SU:

PK-BR -- SF006 -- 3067 11~19~92 16:01 EST
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Date:Nov 19, 1992
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