Motor Club of America Announces Plans To Change Name to Preserver Group, Inc.

Files For Take-All-Comers Relief in New Jersey Personal Auto Insurance



Apr 30, 2001, 01:00 ET from Motor Club of America

    PARAMUS, N.J., April 30 /PRNewswire/ --
 Motor Club of America (Nasdaq:   MOTR) ("the Company") today reported that it
 will change its name to Preserver Group, Inc., after shareholder approval at
 the Company's Annual Meeting of Shareholders on June 6, 2001. The Company has
 also reported that it had reserved a new stock symbol, "PRES" with The Nasdaq
 Stock Market, to be effective after the name change.
     In the Company's 2000 Annual Report, to be mailed to shareholders this
 week, Archer McWhorter, Chairman of the Board of the Company stated, "We're
 not in the motor club business anymore, personal auto continues to decline
 rapidly as a percentage of our business and we are becoming a small and mid-
 sized commercial lines Company. It seems to make sense that our company name
 reflects all of that."
     The Company's results are led by the Preserver Insurance Group, which
 includes the Company's Preserver Insurance Company and Mountain Valley
 Indemnity Company units. The Preserver Insurance Group produced a combined
 ratio of 92.6% in 2000, with a premium to surplus ratio of 1.8 to 1, while
 writing over $35 million in direct Commercial Lines business in the Mid-
 Atlantic and New England.
     The Company also announced today that its Motor Club of America Insurance
 Company ("Motor Club") unit had filed for relief from the take-all-comers laws
 in New Jersey personal automobile insurance. That separate subsidiary's
 premium to surplus ratio was 3.18 to 1 at December 31, 2000, thereby
 qualifying it for such relief under New Jersey law. The Motor Club unit is
 capitalized separate and apart from the Preserver Insurance Group and all
 other subsidiaries, and writes only personal automobile insurance in New
 Jersey.  No other subsidiary  writes such business. The Company stated that if
 relief is granted, that it may signal an important development in the recent
 trends in this segment. Motor Club's filing is pending with the New Jersey
 Department of Banking and Insurance.
 
     Motor Club of America owns and operates five regionally focused property
 and casualty insurance companies, including companies that specialize in small
 and mid-sized commercial insurance through the Preserver Insurance Group.
 
     The Preserver Insurance Group consists of Preserver Insurance Company,
 which writes small commercial and homeowners insurance presently in New
 Jersey, and Mountain Valley Indemnity Company, which writes small and
 mid-sized commercial insurance presently in New England and New York.  The
 Preserver Insurance Group is rated B++ (Very Good) by A.M. Best Company.
 American Colonial Insurance Company plans to commence operations in New York
 in 2001, writing commercial lines in tandem with Mountain Valley.
 
     Motor Club of America Insurance Company writes personal automobile
 insurance in New Jersey and is rated B+ (Very Good) by Best. North East
 Insurance Company writes personal automobile and small commercial lines
 insurance in the State of Maine and is rated B (Fair) by Best.
 
     Forward-Looking Statement Disclaimer. This press release contains
 statements that are not historical facts and are considered "forward-looking
 statements" (as defined in the Private Securities Litigation Reform Act of
 1995), which can be identified by terms such as  "believes", "expects",
 "may", "will", "should", "anticipates", the negatives thereof, or by
 discussions of strategy.   Certain statements are forward-looking statements
 that involve risks, uncertainties, opinions and predictions, and no assurance
 can be given that the future results will be achieved since events or results
 may differ materially as a result of risks facing the Company.  These include,
 but are not limited to, the cyclical nature of the property casualty insurance
 industry, the impact of competition, product demand and pricing, claims
 development and the process of estimating reserves, the level of the Company's
 retentions, catastrophe and storm losses, legislative and regulatory
 developments, changes in the ratings assigned to the Company by rating
 agencies, investment results, availability of reinsurance, availability of
 dividends from our insurance company subsidiaries, investing substantial
 amounts in our information systems and technology, the ability of our
 reinsurers to pay reinsurance recoverables owed to us, our  entry into new
 markets, our acquisition of North East Insurance Company on  September  24,
 1999, our acquisition of Mountain  Valley Indemnity Company on March 1, 2000,
 our successful integration of these  acquisitions, potential future tax
 liabilities related to an insolvent subsidiary and state regulatory and
 legislative  actions which  can affect the profitability of certain lines of
 business and  impede our ability to charge adequate rates, and other risks
 detailed  from  time to time in the Company's filings with the Securities and
 Exchange Commission.
 
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                http://tbutton.prnewswire.com/prn/11690X33651581
 
 

SOURCE Motor Club of America
    PARAMUS, N.J., April 30 /PRNewswire/ --
 Motor Club of America (Nasdaq:   MOTR) ("the Company") today reported that it
 will change its name to Preserver Group, Inc., after shareholder approval at
 the Company's Annual Meeting of Shareholders on June 6, 2001. The Company has
 also reported that it had reserved a new stock symbol, "PRES" with The Nasdaq
 Stock Market, to be effective after the name change.
     In the Company's 2000 Annual Report, to be mailed to shareholders this
 week, Archer McWhorter, Chairman of the Board of the Company stated, "We're
 not in the motor club business anymore, personal auto continues to decline
 rapidly as a percentage of our business and we are becoming a small and mid-
 sized commercial lines Company. It seems to make sense that our company name
 reflects all of that."
     The Company's results are led by the Preserver Insurance Group, which
 includes the Company's Preserver Insurance Company and Mountain Valley
 Indemnity Company units. The Preserver Insurance Group produced a combined
 ratio of 92.6% in 2000, with a premium to surplus ratio of 1.8 to 1, while
 writing over $35 million in direct Commercial Lines business in the Mid-
 Atlantic and New England.
     The Company also announced today that its Motor Club of America Insurance
 Company ("Motor Club") unit had filed for relief from the take-all-comers laws
 in New Jersey personal automobile insurance. That separate subsidiary's
 premium to surplus ratio was 3.18 to 1 at December 31, 2000, thereby
 qualifying it for such relief under New Jersey law. The Motor Club unit is
 capitalized separate and apart from the Preserver Insurance Group and all
 other subsidiaries, and writes only personal automobile insurance in New
 Jersey.  No other subsidiary  writes such business. The Company stated that if
 relief is granted, that it may signal an important development in the recent
 trends in this segment. Motor Club's filing is pending with the New Jersey
 Department of Banking and Insurance.
 
     Motor Club of America owns and operates five regionally focused property
 and casualty insurance companies, including companies that specialize in small
 and mid-sized commercial insurance through the Preserver Insurance Group.
 
     The Preserver Insurance Group consists of Preserver Insurance Company,
 which writes small commercial and homeowners insurance presently in New
 Jersey, and Mountain Valley Indemnity Company, which writes small and
 mid-sized commercial insurance presently in New England and New York.  The
 Preserver Insurance Group is rated B++ (Very Good) by A.M. Best Company.
 American Colonial Insurance Company plans to commence operations in New York
 in 2001, writing commercial lines in tandem with Mountain Valley.
 
     Motor Club of America Insurance Company writes personal automobile
 insurance in New Jersey and is rated B+ (Very Good) by Best. North East
 Insurance Company writes personal automobile and small commercial lines
 insurance in the State of Maine and is rated B (Fair) by Best.
 
     Forward-Looking Statement Disclaimer. This press release contains
 statements that are not historical facts and are considered "forward-looking
 statements" (as defined in the Private Securities Litigation Reform Act of
 1995), which can be identified by terms such as  "believes", "expects",
 "may", "will", "should", "anticipates", the negatives thereof, or by
 discussions of strategy.   Certain statements are forward-looking statements
 that involve risks, uncertainties, opinions and predictions, and no assurance
 can be given that the future results will be achieved since events or results
 may differ materially as a result of risks facing the Company.  These include,
 but are not limited to, the cyclical nature of the property casualty insurance
 industry, the impact of competition, product demand and pricing, claims
 development and the process of estimating reserves, the level of the Company's
 retentions, catastrophe and storm losses, legislative and regulatory
 developments, changes in the ratings assigned to the Company by rating
 agencies, investment results, availability of reinsurance, availability of
 dividends from our insurance company subsidiaries, investing substantial
 amounts in our information systems and technology, the ability of our
 reinsurers to pay reinsurance recoverables owed to us, our  entry into new
 markets, our acquisition of North East Insurance Company on  September  24,
 1999, our acquisition of Mountain  Valley Indemnity Company on March 1, 2000,
 our successful integration of these  acquisitions, potential future tax
 liabilities related to an insolvent subsidiary and state regulatory and
 legislative  actions which  can affect the profitability of certain lines of
 business and  impede our ability to charge adequate rates, and other risks
 detailed  from  time to time in the Company's filings with the Securities and
 Exchange Commission.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X33651581
 
 SOURCE  Motor Club of America