Vesta to Sell Affirmative Insurance Holdings

March 23, 2005

Vesta Insurance Group, Inc. of Birmingham, Ala. has exercised demand registration for approximately 3.0 million of its 7.2 million shares of Affirmative Insurance Holdings, Inc. common stock.

Vesta intends to sell approximately 3.0 million shares of Affirmative currently owned by Vesta's holding company and use the proceeds to repay its $30 million credit facility as well as provide additional capital to further support its property-casualty operations.

Vesta is a holding company for a group of insurance and financial services companies that offer a wide range of consumer-based products.