ICW Group's Strong Financial Position

Message from Kevin Prior, President and CEO

SAN DIEGO, October 17, 2008

To Our Valued Partners,

Recent events in the stock market and the fallout of the credit crisis may have you wondering how ICW Group and its parent company, Western Insurance Holdings, Inc. ("WIH"), are weathering the storm.

Although we are not completely immune from the financial events taking place in our country, rest assured that ICW Group is an island of stability in this sea of crisis. ICW Group's investment portfolio is highly weighted in bonds that have held their value during this downturn. Also, ICW Group's Balance Sheet remains strong; our AM Best rating was recently affirmed and we do not anticipate the need to use our existing line of credit.

Although the stock market turbulence has caused our surplus to decrease in 2008, ICW Group continues to maintain a position of over capitalization. In addition, we have a positive operating gain through September 30, 2008. With a strong balance sheet, consistent operating income and favorable cash flows we are well positioned to move forward during this rebalancing period.

As we navigate through these turbulent financial times, we remain committed to our mission of delivering rock solid insurance products and value added services to our agents and policyholders. In order to do so, we promise to keep a watchful eye on the direction of our economy and continue to be proactive in our long term, conservative approach.

About ICW Group

Privately held ICW Group Insurance Companies represents a group of multi-line property and casualty insurance carriers providing workers' compensation, surety, commercial property, earthquake and personal and business automobile insurance. Its member companies consist of Insurance Company of the West, Explorer Insurance Company and Independence Casualty and Surety. Based in San Diego, California, ICW Group continues to transform itself into an insurance industry leader dedicated to meeting the needs of its agents and the people and companies they insure. More information is available at www.icwgroup.com.

Company Contact:

ICW Group
Gary Whitfield
Director of Marketing and Corporate Communications
858.350.2963
gwhitfield@icwgroup.com