ATLANTIC MUTUAL COMPANIES EXPANDS CAPTIVE PROGRAM TO INCLUDE PERSONAL LINES BUSINESS

NEW YORK, NY, March 3, 2003 -- Atlantic Mutual today announced it is expanding its Agency Captive program with its Atlantic Agency Reinsurance Companies (AARCs) to include personal lines business, making it a unique industry program that embraces commercial, marine and personal insurance coverage.

Under this program, agencies share in the risks and proceeds from their book of commercial, marine and personal insurance business. The results of these companies can increase agencies' profit potential over traditional profit-sharing agreements.

"We view these relationships as a way for the company and agents who have committed themselves to a long-term arrangement on risk sharing, coverage and adequate reserves to enjoy the rewards of that commitment," notes Joseph Rumore, assistant vice president - Business Development.

"The arrangement has been highly successful in driving profits to the company and the AARC members for commercial and marine lines, and we are confident it will do the same for our personal lines relationship as well." The Atlantic Mutual captive program is the oldest, active program of its kind in the insurance industry today, notes Rumore.

Agent and broker response has been very strong and positive to Atlantic Mutual's personal lines products, especially recent enhancements to our Atlantic Master Plan® and our new home appraisal unit," notes Daniel H. Olmsted, senior vice president of the Personal Insurance Division. "By expanding the AARC program to embrace personal insurance, we are giving agents who have capitalized on these enhancements an added opportunity for success." The program, which represents the top tier of the company's agents, currently has seven captive companies formed by Atlantic Mutual in 1996 with 73 agents. Agent participants receive dividend potential in return for long-term partnership commitments. Under the arrangement, the company and its agents have an equal share and equal voting rights in the captive companies.

About The Atlantic Companies

The Atlantic Companies, also known as Atlantic Mutual, is a group of diversified financial services companies with a Wall Street heritage dating back to 1842. The group is widely known for the Atlantic Master Plan insurance program, which is designed specifically for affluent individuals and sold through a select group of independent agents. The Atlantic Companies acts as a property-casualty insurer, manages claims for commercial insurance, and helps other business partners target profitable niches in the insurance marketplace. Additional information about The Atlantic Companies and the Atlantic Master Plan can be found at www.atlanticmasterplan.com.


Contact: Peter G. Scott
Corporate Marketing & Communications
973-408-6044