Guaranty National Reduces Rates On Six-Month Automobile Coverages

16 June 1998

    ENGLEWOOD, Colo., June 15 -- Nonstandard automobile insurer
Guaranty National has announced plans to lower rates an average of six percent
on its two six-month automobile insurance products offered to Ohio drivers.
Those drivers expected to benefit most include married males, most single
females and single males between 19 and 29.
    The reduction, which takes effect June 15 on new business and August 15 on
renewal business, includes a 2.2 percent decrease on the Company's Summit
product, and an 8.6 percent decrease on its Mesa product.
    Additionally, eligibility requirements for Mesa have been reduced, making
it easier for drivers requiring minimum coverage six-month policies to
qualify.  Also, the discount rate for drivers with multi-car coverage, prior
insurance, and a responsible residency history, has been raised from
35 percent to 45 percent.
    In the property and casualty business since 1955, Guaranty National became
a stand-alone personal auto insurer in 1997, through a merger with its parent
company, specialty insurer Orion Capital Corporation.  Subsequent acquisitions
of nonstandard personal auto operations in North and South Carolina expanded
Guaranty National's geographic presence to 35 states, and its distribution
network to nearly 10,000 independent agents.  Today, Guaranty National is the
third largest nonstandard carrier in the country marketing through independent
agents.
    Currently, the Company offers two competitively priced nonstandard
products, which can he structured to meet specific customer requirements.  Its
Summit and Mesa products meet the needs of the driver seeking the lowest
six-month rate.  Legacy and Shield, which will be introduced in Ohio later
this year, are tailored to the driver looking for a low down payment one-month
coverage.  A variety of discounts, including a l5 percent transfer discount, a
20 percent multi-car discount, and a l0 percent homeowner's discount, provide
additional pricing flexibility.
    Guaranty National and its affiliates carry A.M. Best ratings of
"A(Excellent)" or "A-(Excellent)."  Other Orion Capital subsidiaries include
DPIC Companies, EBI Companies, Orion Specialty, and Wm. H. McGee.