June 15, 2007

Western National Mutual Insurance Company to Merge with Farmers Home Mutual Insurance Company

Western National Insurance Group (WNIG) today announced plans to merge Western National Mutual Insurance Company and Farmers Home Mutual Insurance Company into a single company under the surviving name of Western National Mutual Insurance Company.  Western National Mutual previously acquired control of Farmers Home Mutual in an affiliation agreement completed in June 2006.

“The June 2006 affiliation between Western National Mutual and Farmers Home Mutual has been extremely successful for both companies’ policyholders and agents,” said Stuart Henderson, president & chief executive officer.  “Over the past year, we’ve grown our premium base, diversified the areas in which we write business and gained greater economies of scale.  Now, after seeing the good fit of the two companies and recognizing that there is no advantage to operating them separately, we will combine them under a single name and brand.”

The Board of Directors of both Western National Mutual and Farmers Home Mutual took the first step in this process by approving the plan of merger during meetings held on June 12 and 13 respectively.  Following approval by the policyholders at special meetings scheduled for September 2007, the plan will be submitted to the Minnesota Commerce Department for final approval.  WNIG anticipates the effective date of the merger to be December 31, 2007.

Western National Insurance Group currently consists of five regional Property and Casualty Insurance companies with shared administrative offices in Edina, Minnesota. Western National Mutual Insurance Company writes personal and commercial lines in MN, WI, SD, ND and IA. Western National Assurance Company writes personal lines in WA, OR, NV and UT, and commercial lines in WA and OR (maintaining an underwriting and claim office in Seattle). Farmers Home Mutual Insurance Company and Western Home Insurance Company currently write personal lines in MN, WA, NV and UT, while Pioneer Specialty Insurance Company is scheduled to begin writing select classes of commercial lines business beginning in the first quarter of 2008.  All of the companies' products are sold exclusively through professional independent agents.

For further information, contact:

Mary S. Manley

SVP Corporate Affairs & Administration