October 14, 2005

Western National Insurance Group Announces Third Quarter 2005 Results

Western National Insurance Group today announced their 2005 financial results through September 30, 2005. Total Assets increased $41.3 million from 12/31/04 (12.1%), and now total $383.1 million. Net written premium increased $7 million, or 5.2%, from the same time last year. 

Multiple localized severe weather events in June and September resulted in losses of over $8 million this year. This abnormal activity, however, added only 2.5 points to the Combined Ratio (92.4% at 9/30/05, versus 89.9% one year ago) and has had a minimal impact on year-to-date 2005 earnings (Net Income After Tax of $12.3 million compared to $12.9 million at 9/30/04. Ending Surplus increased from $107.9 million to $126.9 million (up $19 million, or 17.6%). Year-end results are still expected to significantly surpass budgeted goals, and to be superior to the industry as a whole. 

"These storms have allowed us to show our policyholders the value of our product, and, in particular, the value of our superior claim service", said Stuart Henderson, president & chief executive officer. "We also have again exhibited the financial strength we possess, which allows us to not only weather such activity, but to prosper despite it. We thank our employees, independent agent partners, loyal policyholders, and other business partners for working with us to achieve these superior financial results." 

Western National Insurance Group consists of two regional Property and Casualty Insurance companies with annual direct written premium in excess of $215 million. Western National Mutual Insurance Company is headquartered in Edina, Minnesota and writes in MN, WI, SD, ND and IA. Western National Assurance Company maintains offices in Seattle, Washington, and writes in WA and OR. Both companies offer both personal and commercial lines. The company distributes its insurance products solely via the Independent Agency distribution system.

For further information, contact:

Mary S. Manley

SVP Corporate Affairs & Administration