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AutoOne Insurance Gets Green Light to Offer Services to New States and for New Markets

Company Will Begin Writing Assigned Risk Policies in New States in January

MELVILLE, N.Y., Dec. 14 -- AutoOne Insurance, an insurance company that accepts Assigned Risks on behalf of its client insurance companies, has been approved as a servicing carrier to write personal auto assignments in eight new states and to write commercial auto assignments in three new states. AutoOne will begin writing Assigned Risk policies in January 2005 for personal automobile drivers (LAD) in Pennsylvania, Texas, California, Connecticut, Vermont, Maine, Delaware and Washington, D.C., and for commercial automobile risk (CLAD) assignments in New York, Pennsylvania and Texas. The company will also begin writing Low Cost Auto policies in California.

Assigned Risks are those drivers who are unable to obtain automobile insurance in the voluntary market. AutoOne has been an approved servicing carrier for personal auto assignments in New York since 2001 and in New Jersey since 2002.

AutoOne has successfully secured agreements with many new clients, and retained all existing clients in handling their Assigned Risk assignments for personal and/or commercial policies starting in January 2005. "We are very excited about the upcoming year and look forward to extending our great service to both new clients and established ones," said Carey Benson, AutoOne's President and CEO. "We were fortunate to be approved so rapidly in all of the states where we applied." AutoOne's entry into these new markets gives insurance companies another option, as their previous choices for outsourcing Assigned Risk business were quite limited or nonexistent.

"Expansion has allowed us to enhance our valued relationships with our current carrier clients. It has also increased the number of insurance companies we will serve in 2005 by over 65 percent," added Benson.

"The new competition in these states has also caused the rates that companies pay for Assigned Risk services to fall. Our client carriers can outsource this complex, mandated business to a sophisticated, financially solid organization and save money at the same time. Needless to say, our clients are quite pleased," Benson concluded.

About AutoOne Insurance Group

AutoOne Insurance is a division of the OneBeacon Insurance Group, which is rated A (Excellent) by A.M. Best. OneBeacon is wholly-owned by the White Mountains Insurance Group, Ltd. of Hamilton, Bermuda . AutoOne Insurance is headquartered in Melville, New York with a branch office in Syracuse, New York.

AutoOne's New York and New Jersey LAD, CLAD and Take-out Programs are written through AutoOne Insurance Company. AutoOne also offers voluntary personal automobile insurance coverage through designated insurance brokers and/or appointed insurance agents throughout the state of New York. All other AutoOne Assigned Risk programs are written through Pennsylvania General Insurance Company. AutoOne's New York Private Passenger Auto Program is written through PG Insurance Company of New York (PGNY). AutoOne, Pennsylvania General and PGNY are members of the OneBeacon Insurance Group.

For more information, call 866.252.4669 or visit http://www.autooneins.com/.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

The information contained in this earnings release may contain "forward- looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, included or referenced in this release which address activities, events or developments which we expect or anticipate will or may occur in the future are forward-looking statements. The words "believe," "intend," "expect," "anticipate," "project," "estimate," "predict" and similar expressions are also intended to identify forward- looking statements. These forward-looking statements include, among others, statements with respect to White Mountains':

   * growth in book value per share or return on equity;
   * business strategy;
   * financial and operating targets or plans;
   * incurred losses and the adequacy of its loss and loss adjustment
     expense reserves;
   * projections of revenues, income (or loss), earnings (or loss) per
     share, dividends, market share or other financial forecasts;
   * expansion and growth of our business and operations; and
   * future capital expenditures.

These statements are based on certain assumptions and analyses made by White Mountains in light of its experience and perception of historical trends, current conditions and expected future developments, as well as other factors believed to be appropriate in the circumstances. However, whether actual results and developments will conform with our expectations and predictions is subject to a number of risks and uncertainties that could cause actual results to differ materially from expectations, including:

   * the continued availability of capital and financing;
   * general economic, market or business conditions;
   * business opportunities (or lack thereof) that may be presented to it
     and pursued;
   * competitive forces, including the conduct of other property and
     casualty insurers and reinsurers;
   * changes in domestic or foreign laws or regulations applicable to White
     Mountains, its competitors or its clients;
   * an economic downturn or other economic conditions adversely affecting
     its financial position;
   * loss reserves established subsequently proving to have been inadequate;
     and
   * other factors, most of which are beyond White Mountains' control.

Consequently, all of the forward-looking statements made in this earnings release are qualified by these cautionary statements, and there can be no assurance that the actual results or developments anticipated by White Mountains will be realized or, even if substantially realized, that they will have the expected consequences to, or effects on, White Mountains or its business or operations. White Mountains assumes no obligation to update publicly any such forward-looking statements, whether as a result of new information, future events or otherwise.