ATLANTIC MUTUAL ASSERTS FINANCIAL STRENGTH AND PLAN TO MOVE FORWARD AFTER DOWNGRADE BY A.M. BEST

New York, NY, October 6, 2003 – Atlantic Mutual today expressed disappointment over A.M. Best’s decision to lower the company’s financial strength rating to a B++ (Very Good) from an A- (Excellent) despite important accomplishments in strengthening capitalization, earnings and quality of surplus.

Those company efforts added significantly to profitability by eliminating fees associated with soft capital, lowering operating expenses, and adding to income with a higher bond allocation.

Atlantic Mutual vowed to move forward. With $470 million in surplus, over $800 million in loss reserves, and a solid reinsurance program with “A” rated carriers, the company intends to continue concentrating on writing business in commercial market segments and affluent personal lines.

In addition, the company plans to continue pursuing a variety of capital raising options that would further strengthen its balance sheet. On September 25, the company announced the sale of ocean cargo and select inland marine businesses to Traveler’s Property Casualty Corp. as an important accomplishment in raising capital.

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