Motor Club of America To Acquire Mountain Valley Indemnity

17 December 1999

    PARAMUS, N.J., Dec. 16 -- Motor Club of America
("Motor Club" or the "Company") announced today that it had
signed a definitive agreement to acquire Mountain Valley Indemnity Company
("Mountain Valley"), formerly known as White Mountains Insurance Company, from
a subsidiary of Unitrin, Inc. .
    Consummation of the purchase is subject to the satisfaction of certain
conditions set forth in the purchase agreement, including authorization by
state insurance regulators.  Motor Club and Unitrin expect that these
conditions will be satisfied in the first quarter of 2000.
    Motor Club of America is a property and casualty insurance holding
company. Preserver Insurance Company writes small commercial and homeowners
insurance in New Jersey.  Motor Club of America Insurance Company writes
personal automobile insurance in New Jersey.  Both are separately rated B+
(Very Good) by A.M. Best.  North East Insurance Company writes personal
automobile and small commercial lines insurance in the State of Maine and is
presently rated B- (Fair) by Best. American Colonial Insurance Company,
domiciled to write insurance in the State of New York, plans to commence
operations in the second quarter of 2000.
    Mountain Valley Indemnity Company is a property and casualty insurer
licensed in ten states and is located in Manchester, New Hampshire.  Mountain
Valley is a member of the Unitrin Group, Inc. which is rated A++ (Superior) by
A.M. Best.
    Philo Smith Capital Corporation and Cochran, Caronia & Co. are serving as
financial advisors to Motor Club of America.

    Forward-Looking Statement Disclaimer.  This press release contains
statements that are not historical facts and are considered "forward-looking
statements" (as defined in the Private Securities Litigation Reform Act of
1995), including statements concerning the expected benefits of the merger and
the expected future satisfaction of conditions to consummation of the merger.
Consummation of the merger and future benefits therefrom involve various risks
and uncertainties, including the risk of material adverse changes in financial
markets or the condition of Motor Club; risks of the imposition of
unanticipated regulatory conditions to the merger; risks associated with Motor
Club's entry into new markets; and state regulatory and legislative actions
which can affect the profitability of certain lines of business and impede the
companies' ability to charge adequate rates.