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RAIN AND HAIL/ACE AMERICAN/ACCEPTANCE CORPORATION
ANNOUNCE LETTER OF INTENT
(Johnston, Iowa, Philadelphia, Pennsylvania, and Council Bluffs, Iowa—November 18, 2002) Rain and Hail L.L.C. (“Rain and Hail”), and ACE American Insurance Company, a subsidiary of ACE-INA Corporation, and ACE Limited, a Bermuda based insurance holding company (NYSE: ACE) (collectively “ACE”) and Acceptance Insurance Companies, Inc. (NYSE:AIF) today announced the signing of a non-binding Letter of Intent setting forth the preliminary terms for a potential purchase of the crop insurance assets of Acceptance Insurance Companies, Inc. and/or one or more of its affiliates or subsidiaries (collectively, “Acceptance”) by Rain and Hail and/or certain of its affiliates, and ACE or one of its affiliates.
The Letter of Intent contemplates transfer by Acceptance of crop insurance policies for the 2003 Crop Year, as well as relationships with crop insurance agents and adjusters. The proposed sale is contingent upon several conditions, including the negotiation and execution of a definitive agreement, approval by Boards of Directors, and receipt of all appropriate regulatory approvals. There can be no assurance as to the final terms of the proposed transaction, that the conditions will be satisfied, or that the proposed transaction will be completed.
“Rain and Hail, as spokesman for both acquiring entities, welcomes the opportunity to bring together two books of business that emphasize providing premier risk management services to America’s farmers,” said John Joyce, Rain and Hail Chairman. “We strongly believe this transition will strengthen the commitment to service and provide the financial stability agents and farmers require from their crop insurance provider. We are hopeful this proposed transaction will move forward rapidly.”
“We believe that the transition of our crop insurance business to Rain and Hail provides the best opportunity for our agents and policyholders,” said John E. Martin, Acceptance Chief Executive Officer. “Rain and Hail and ACE are a well respected team and long time provider of crop insurance. With ACE American Insurance Company, and Agri General Insurance Company, Rain and Hail’s principal underwriting companies, Rain and Hail is well positioned to serve the needs of agents and policyholders. We look forward to completing the transaction, and working with Rain and Hail and ACE in the transition of our crop insurance business.”
This release includes forward-looking statements with respect to Acceptance Insurance Companies, Inc. and ACE Limited. Such forward-looking statements are subject to inherent risks and uncertainties that may cause actual results to differ materially from those contemplated by such forward-looking statements, including factors noted in Acceptance’s Form 10K for the year ended December 31, 2001, and Form 10-Q for the quarter ended June 30, 2002, which are incorporated herein by this reference. The Company will not update or revise the forward-looking statements in this release even though the conditions or circumstances currently underlying those statements may materially change.
Contacts:
John H. Joyce
Chairman
Rain and Hail L.L.C.
Acce
John E. Martin
President and Chief Executive Officer
Acceptance Insurance Companies, Inc.
Wendy Davis Johnson
ACE Limited
