AFFIRMATIVE AFFIRMS SUBPOENA:

December 6, 2004

Affirmative Insurance Holdings Inc. of Addison, Texas, a provider of personal non-standard automobile insurance, acknowledged that its insurance company subsidiaries and one of its agencies have received subpoenas from the Illinois Department of Financial and Professional Regulation, Division of Insurance, requesting documents and seeking information in connection with its industry-wide investigation into producer compensation arrangements. The company indicated that the subpoenas are “consistent with the subpoenas delivered to most other Illinois domestic insurance companies and major insurance brokerage firms.” Affirmative said it conducts “its business with the highest of ethical standards,” and that it intends “to fully cooperate with the state of Illinois in its investigation.” Affirmative currently offers products and services in 11 states, including Texas.