ICW Group Streamlines Operations and Workforce

Changes Designed to Ensure Financial Strength While Maintaining Customer Focus

SAN DIEGO, Calif. - August 19, 2010 - ICW Group, in anticipation of ongoing broad scale economic challenges and continued soft market conditions in the Property and Casualty insurance segment, is further streamlining its operational infrastructure and its workforce. These changes result in a significant reduction in go-forward operational costs and will ensure the proper alignment between revenue and expense to protect operating margins.

The reduction in workforce impacts approximately 96 team members across the Enterprise and touches virtually every operating unit. This workforce scale back represents about 13% of ICW Group’s team member population and leaves a group of approximately 600 in place. "These types of decisions are never easy for any organization," said Kevin Prior, president and CEO of ICW Group. "We have a responsibility however, to protect the long term financial strength and viability of ICW Group."

These operating changes and cost reductions will have little effect on the company's ability to continue delivering quality products and services to its Agent and Broker partners. All critical core initiatives such as the enterprise-wide ERP initiative via SAP® and the Workers' Compensation underwriting management system (SnapSM) remain in place. All key operating functions remain intact and ICW Group will continue to invest in building a branded value proposition with its customers.

"Our challenges are not dissimilar to many other companies and competitors in our space," said Prior. "Despite these challenges we will continue to honor our responsibility to our customers and maintain a strategic path of preparing our organization, systems, processes and talent to even better position ourselves to serve our clients when favorable market conditions return."

ICW Group was recognized in 2009 as one of Ward's Top 50 P&C carriers as well as one of Insurance Journal Magazine's 149 "Super Regional Property Casualty Insurers". The carrier maintains an A- (Excellent) financial rating from industry rating watchdog A.M. Best.

About ICW Group

Privately held ICW Group represents a group of multi-line property and casualty insurance carriers providing workers' compensation, earthquake and personal / business auto insurance. Its member companies consist of Insurance Company of the West, Explorer Insurance Company and Independence Casualty and Surety. Based in San Diego, 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.

Contact:

ICW Group
Tony Sciolla
Vice President of Enterprise Marketing
858.350.2658
tsciolla@icwgroup.com