UNIC Affirmed

March 12, 2001

The “Api” FSR on United National Insurance Co. (UNIC) was confirmed by S&P. The rating action was based on the consolidated financial results of UNIC, Hallmark Insurance Co. and Diamond State Insurance Co., which operate under an interaffiliate pooling agreement. Rating factors include extremely strong consolidated capital adequacy and operating performance, partially offset by the group’s erratic premium revenue.