Vesta Fire Insurance Corp. Completes Securitization  Transaction of INEX Insurance Exchange

CHICAGO, IL., July 13 - The INEX Insurance Exchange announced today that Vesta Fire Insurance Corp., an operating subsidiary of Vesta Insurance Group in Birmingham, Alabama, completed a $50 million Securitization transaction utilizing a Special Purpose Limited Syndicate (NeHi Re) formed specifically on INEX to facilitate this transaction.  NeHi Re's reinsurance obligation is 100% secured by a fully funded trust agreement.

The transaction, which has a three year term, provides $50 million in property loss exposure for Vesta Fire Insurance Corp. and covers property losses due to hurricanes in the Northeast U.S. as well as hurricanes and tropical storms in Hawaii.  The structure entails $8.5 million in equity investments and $41.5 million raised from the sale of reinsurance-linked notes to the capital markets.  Reinsurance payments are triggered by estimated losses to Vesta Fire due to hurricane or tropical storms as determined by computer modeling of Vesta Fire's risk exposure done by Applied Insurance Research ("AIR").  Risks and attachment points will by recalculated each year.

The transaction, which is only the second securitization done completely within the United States, was reviewed and approved by the Illinois Department of Insurance in accordance with INEX Regulation 27.  James E. Tait, Chairman and Chief Financial Officer of Vesta stated, "The NeHi transaction represents only the second of what we expect to be a series of future securitizations through INEX.

The transaction was structure and underwritten by Aon Capital Markets, a unit of Aon Corp.  Vesta Fire Insurance Corp. was represented by the law firm of Sidley & Austin, Chicago, Illinois.

The INEX Insurance Exchange is a worldwide marketplace that unites investors, brokers and customers seeking sound, cost-sensible solutions for insurance and financial risks.

INEX Announces First U.S.-Based Insurance Securitization

CHICAGO, IL., March 26 - In a development that broadens the landscape for risk securitization, the INEX Insurance Exchange announced the completion of the first onshore insurance-linked securities offering. The transaction is also the first securitization with sole exposure to Midwestern United States earthquakes.

"Completion of this transaction through INEX marks a new milestone for insurers seeking efficient sources of fully collateralized reinsurance capacity and for investors seeking portfolio diversification," said James E. Tait, INEX president and chief executive officer.

"INEX's capabilities offer a way to access the capital markets through risk securitization using a United States-domiciled vehicle," Tait said.

"Issuing insurance-linked securities onshore has been viewed as a potentially attractive option for both issuers and investors," Tait continued. "It offers opportunities for administrative efficiencies, enhanced security and U.S. regulatory oversight."

Such transactions were not practical in the United States until November 1998, when the Illinois Department of Insurance issued an order that allowed the expansion of INEX's regulations to permit special purpose limited syndicates on INEX to conduct insurance securitization transactions.

The capital markets transaction announced by INEX funded a fully collateralized reinsurance agreement providing $100 million of Midwest earthquake coverage to the Kemper Insurance Companies.

"Kemper is pleased to take advantage of the first U.S.-based insurance securitization, which allows us to prudently diversify our access to catastrophic reinsurance capacity," said William D. Smith, Kemper president and chief operating officer. "We obtained fully collateralized reinsurance protection on a multi-year basis against our Midwest earthquake exposures more efficiently than we could have in an off-shore transaction."

The transaction was structured, underwritten and distributed by Aon Capital Markets, the investment banking affiliate of Aon Corporation. Aon Capital Markets is a leader in the transfer of insurance risk to the capital markets. Kevin Callahan, chairman of Aon Capital Markets, said, "This ground-breaking, insurance-linked securities offering provides an innovative structure that expands the capabilities of U.S.-based issuers to more efficiently transfer risks to a broader group of institutional investors."

INEX is a world marketplace that unites investors, brokers and customers seeking sound, cost-sensible solutions for insurance and financial risks worldwide.

INEX Enters New Millennium with New Underwriting Members

CHICAGO, IL.., March 10, 2000- The INEX Insurance Exchange recently announced the formation and approval of a new underwriting syndicate member. Vesta Capital Insurance Syndicate, Inc., a wholly-owned subsidiary of Vesta Insurance Group of Birmingham, Alabama was approved by the INEX Board of Trustees and Illinois Department of Insurance prior to year-end. Vesta Capital Insurance Syndicate, Inc. was initially capitalized at $30 million. It will concentrate of securitization transactions and available alternative market opportunities. Vesta Insurance Group Chairman and Chief Financial Officer, James E. Tait, who previously served as President and CEO of the Inex Insurance Exchange stated, "Vesta's membership in INEX represents our firm belief in the unique structure of the Exchange and the numerous opportunities and benefits provided by such a flexible marketplace." To further emphasize Vesta's commitment to INEX, at the invitation of its Board of Trustees, Mr. Tait agreed to serve as Vice Chairman of the Board.

Additionally, INEX representatives confirmed the purchase of RCA Syndicate #1, Ltd., by American Safety Holdings Corp., a member company of the American Safety Insurance Group. Commenting on the purchase, Lloyd Fox, President and Chief Executive Officer of the American Safety Holdings Corp., said, "We are pleased to have acquired this entity which has an established record of developing and managing insurance programs in specialty risk areas. We feel that our association with INEX will allow us to expand our presence in the surplus lines arena." The syndicate will undergo a name change and in the future will be known as American Safety Assurance Company.

INEX is a surplus lines marketplace currently comprised of seven (7) underwriting members whose policy holders surplus exceeds $100 million. INEX members have authority to transact business in more than 40 states and jurisdictions.

INEX is a world marketplace that unites investors, brokers and customers seeking sound, cost-sensible solutions for insurance and financial risks worldwide.

Vesta Fire Insurance Corp. Completes Securitization Transaction of INEX Insurance Exchange

INEX Announces first U.S.-based Insurance Securitization

INEX Enters New Millennium with New Underwriting Members.

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