July 31, 2007

Western National Insurance Group Announces 2nd Quarter Results and Achievement of $200 Million Surplus

Western National Insurance Group today announced that its Policyholder Surplus has surpassed the $200 million milestone – an all-time high for the 100+ year-old Minnesota-based property and casualty insurer.  The announcement comes just three years after the Group first attained the $100 million Surplus mark in June of 2004.  The current $201.2 million Surplus is an increase of $45.2 million, or 29%, over the Surplus level at 6/30/06.

“The exceptional results and consequent growth of our Surplus are a credit to the quality of our employees and partner agencies, and provide outstanding protection to our valued policyholders,” said president and chief executive officer, Stuart Henderson.  “Our hard work, perseverance and commitment to service have made it possible to reach yet another important milestone, and we look forward to celebrating many more in the future.”

The Surplus announcement was released as part of Western National Insurance Group’s year to date results through June 30, 2007.  These numbers reflect the pooled results of Western National Mutual Insurance Company, Western National Assurance Company, Farmers Home Mutual Insurance Company, Western Home Insurance Company and Pioneer Specialty Insurance Company.  All comparisons are to results as of 6/30/06.

Western National Insurance Group is a super-regional property and casualty insurance company 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