Meadowbrook Obtains Permanent Waiver of Pending $15 Million Loan Reduction

Apr 11, 2001, 01:00 ET from Meadowbrook Insurance Group, Inc.

    SOUTHFIELD, Mich., April 11 /PRNewswire/ -- Meadowbrook Insurance Group,
 Inc. (NYSE:   MIG) today announced that the pending obligation to reduce its
 credit facility by $15 million on or before April 30, 2001, has been
 permanently waived by its banks.  The banks have also agreed to waive all
 prior covenant violations of the existing loan agreement and establish
 mutually agreeable new covenants.
     This revised agreement calls for the Company to begin a $5 million
 quarterly amortization of the principal of the credit facility on
 September 30, 2001, absent an earlier voluntary reduction.  The quarterly
 amortization would then continue until the facility is paid in full, expires
 in August 2002, is renegotiated or extended.
     As previously announced, Meadowbrook retained an investment banking firm
 to assist in enhancing the Company's overall capital position.  Meadowbrook
 will continue to aggressively and prudently pursue its capital raising efforts
 and reduce the credit facility in due course.
     "We are pleased that our banking partners have shown their cooperation and
 support by recognizing the mutual benefit of reaching this agreement.  This
 serves to facilitate the on-going improvement of Meadowbrook's balance sheet
 and the reduction of the debt in a responsible and timely manner," commented
 Robert S. Cubbin, Meadowbrook's President and Chief Operating Officer.  "The
 banks' decision to permanently waive the pending reduction in the credit
 facility is indicative of a high confidence level in our commitment to capital
 raising initiatives and our strong resolve to swiftly return to profitability
 in the near term."
     A leader in the alternative risk market, Meadowbrook is a program-oriented
 risk management company, specializing in alternative risk management solutions
 for agents, brokers, and insureds of all sizes.  Common shares of Meadowbrook
 Insurance Group, Inc. are listed on the New York Stock Exchange under the
 symbol "MIG."  For further information, please visit Meadowbrook's corporate
 web site at www.meadowbrook.com or contact Karen M. Spaun, Vice President of
 Investor Relations at 248-204-8178.
     Certain statements made by Meadowbrook Insurance Group, Inc. in this
 release may constitute forward-looking statements.  Please refer to the
 Company's most recent 10-K and 10-Q for more information on risk factors.
 Actual results could differ materially.  These forward-looking statements
 involve risks and uncertainties including, but not limited to the following:
 the frequency and severity of claims; uncertainties inherent in reserve
 estimates; catastrophic events; a change in the demand for, pricing of,
 availability or collectibility of reinsurance; increased rate pressure on
 premiums; obtainment of certain rate increases in current market conditions;
 investment rate of return; changes in and adherence to insurance regulation;
 obtainment of certain processing efficiencies; changing rates of inflation;
 and general economic conditions.  Meadowbrook is not under any obligation to
 (and expressly disclaims any such obligation to) update or alter its forward-
 looking statements whether as a result of new information, future events or
 otherwise.
 
 

SOURCE Meadowbrook Insurance Group, Inc.
    SOUTHFIELD, Mich., April 11 /PRNewswire/ -- Meadowbrook Insurance Group,
 Inc. (NYSE:   MIG) today announced that the pending obligation to reduce its
 credit facility by $15 million on or before April 30, 2001, has been
 permanently waived by its banks.  The banks have also agreed to waive all
 prior covenant violations of the existing loan agreement and establish
 mutually agreeable new covenants.
     This revised agreement calls for the Company to begin a $5 million
 quarterly amortization of the principal of the credit facility on
 September 30, 2001, absent an earlier voluntary reduction.  The quarterly
 amortization would then continue until the facility is paid in full, expires
 in August 2002, is renegotiated or extended.
     As previously announced, Meadowbrook retained an investment banking firm
 to assist in enhancing the Company's overall capital position.  Meadowbrook
 will continue to aggressively and prudently pursue its capital raising efforts
 and reduce the credit facility in due course.
     "We are pleased that our banking partners have shown their cooperation and
 support by recognizing the mutual benefit of reaching this agreement.  This
 serves to facilitate the on-going improvement of Meadowbrook's balance sheet
 and the reduction of the debt in a responsible and timely manner," commented
 Robert S. Cubbin, Meadowbrook's President and Chief Operating Officer.  "The
 banks' decision to permanently waive the pending reduction in the credit
 facility is indicative of a high confidence level in our commitment to capital
 raising initiatives and our strong resolve to swiftly return to profitability
 in the near term."
     A leader in the alternative risk market, Meadowbrook is a program-oriented
 risk management company, specializing in alternative risk management solutions
 for agents, brokers, and insureds of all sizes.  Common shares of Meadowbrook
 Insurance Group, Inc. are listed on the New York Stock Exchange under the
 symbol "MIG."  For further information, please visit Meadowbrook's corporate
 web site at www.meadowbrook.com or contact Karen M. Spaun, Vice President of
 Investor Relations at 248-204-8178.
     Certain statements made by Meadowbrook Insurance Group, Inc. in this
 release may constitute forward-looking statements.  Please refer to the
 Company's most recent 10-K and 10-Q for more information on risk factors.
 Actual results could differ materially.  These forward-looking statements
 involve risks and uncertainties including, but not limited to the following:
 the frequency and severity of claims; uncertainties inherent in reserve
 estimates; catastrophic events; a change in the demand for, pricing of,
 availability or collectibility of reinsurance; increased rate pressure on
 premiums; obtainment of certain rate increases in current market conditions;
 investment rate of return; changes in and adherence to insurance regulation;
 obtainment of certain processing efficiencies; changing rates of inflation;
 and general economic conditions.  Meadowbrook is not under any obligation to
 (and expressly disclaims any such obligation to) update or alter its forward-
 looking statements whether as a result of new information, future events or
 otherwise.
 
 SOURCE  Meadowbrook Insurance Group, Inc.