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Quantum Direct Subsidiary Assumes Auto Insurance Policies of Direct Choice

4 April 2000

Quantum Direct Subsidiary Assumes Auto Insurance Policies of Direct Choice

    SOUTHFIELD, Mich.--April 3, 2000--Quantum Direct Financial Corporation, a Southfield, Michigan-based insurance organization (Quantum Direct), today announced that its subsidiary, All Nation Insurance Company (All Nation), has assumed all of the insurance policies issued by Direct Choice Insurance Company (Direct Choice), through an assumption reinsurance transaction effective on March 31, 2000. Terms of the transaction were not disclosed.
    All Nation, a Minnesota-domiciled insurance company based in Southfield, Michigan, writes private passenger automobile insurance in Illinois, Iowa, Nebraska and Wisconsin, including on a direct basis through its Driver's Direct(R) program (1-800-68-DIRECT). Direct Choice, an Illinois-based insurance company and member of The Marmon Group of companies, writes private passenger automobile insurance on a direct basis in Illinois and has decided to wind down its operations.
    "We are pleased to be able to accommodate Direct Choice in its objective of winding down its operations," said Richard H. Smith, President of both Quantum Direct and All Nation. "Private passenger auto is a difficult business, but we are very bullish on our own prospects. Although the Direct Choice transaction is not particularly material to our overall operation, we think it demonstrates our ability to accomplish transactions that may be outside the ordinary course. Quantum Direct is quite active and creative in establishing strategic relationships and opportunities, and we expect to be growing substantially in the very near term."
    Quantum Direct Financial Corporation is a privately-held insurance holding company based in Southfield, Michigan. Quantum Direct is affiliated with First Mercury Financial Corporation, a Southfield, Michigan-based insurance holding company specializing in security guard and alarm insurance coverages, which it writes through its subsidiaries, CoverX Corporation and First Mercury Insurance Company.