Reliance, Combined Insurance Co. Reach Agreement

August 18, 2000

Reliance Group Holdings has reached an agreement with Combined Insurance Co. of America, a life and health insurance subsidiary of Aon Corp., for the purchase of Reliance’s Accident and Health book. The purchase is subject to the negotiation and execution of definitive agreements, as well as customary regulatory approvals.

Reliance’s senior vice president of A&H, Penny Stroud, said the news is very positive for policyholders and insurance brokers. “They have been extremely supportive over the past few months, and we are pleased that Combined Insurance will be able to fulfill their accident and health insurance needs.”

This transaction encompasses Reliance’s university health insurance business; employer stop-loss coverage’ short-term, individual and global medical insurance; dental coverage; group accident; student accident (grades K-12); and high-limit disability insurance business. In 1999, A&H represented less than 10 percent of Reliance’s net premiums written.

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