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MTS, New Century Global, SPFM and Americana Financial Insurance Services Announce Merger

06/03/2002

Americana Financial Services, Inc., a wholesale insurance distribution holding company today announced its merger with MTS Insurance Services, LLC, (MTS) of Chatsworth, CA, New Century Global, Inc., (New Century) of New York, NY and Specialty Programs & Facilities Managers, Inc., (SPFM) of Pasadena, CA. Now, with more than 300 employees and 16 locations nationwide, the company is poised to fully partner with the retail brokerage community. To most accurately reflect the merger and the origin of its combined organizations, the company has changed the name of its holding company from Americana Financial Services, Inc. to American Wholesale Insurance Group, Inc., (www.AMWINS.com).

According to American Wholesale’s President and CEO M. Steven DeCarlo, the strategy behind the merger is to create an organization solely dedicated to serving retail brokers via our wholesale brokerage, underwriting entities (MGAs), premium finance and affinity marketing capabilities in the most effective way possible. “We have merged to create the leading independent wholesale insurance operations in the country. We are truly excited about what this combination of resources means in terms of our ability to service our broker and insurance carrier partners, said DeCarlo. “Our tag line is “Because Independence Matters,” to reinforce American Wholesale’s values and commitment to supporting the independent retail broker and our pledge not to compete in the retail marketplace,” he added.

In connection with the merger, American Wholesale raised an additional $15 million in capital. The additional capital was used to complete the merger along with supporting future acquisitions. Pegasus Capital Advisors, L.P., a private equity firm based in Connecticut made the investment. “The investment by Pegasus demonstrates their confidence in this transaction and the strategic direction of our firm, It will also enable us to continue our growth through strategic acquisitions and by attracting high caliber teams of professionals." stated DeCarlo.

Through its combined capabilities and vast experience in the wholesale marketplace, the company has enhanced its product portfolio with a wider array of both Property & Casualty and Life & Health products. While not a complete list, American Wholesale’s product capabilities include: catastrophe property, municipality liability, waste haulers liability, entertainment liability, umbrella, pollution liability, as well as health, life, disability, retiree medical, premium financing and many other customized insurance products.

“By merging our companies, we continue to strive toward our goal of becoming the leading, independent wholesale brokerage operation in the United States. Our combined company provides us the platform to continue to expand and ultimately bring more services, products, talent and success to our customers,” said Ernie Telford, MTS Managing Partner. Founded in 1980, MTS today is one of the largest independent wholesale and surplus lines insurance brokers on the West Coast. Mr. Telford will take on the additional role of Chairman of American Wholesale Insurance Group.

“We see this merger as a positive step toward fulfilling our vision of being the most influential independent wholesale insurance operations in the country. We will continue to develop successful business opportunities for the corporation, its customers and its markets, while maintaining our entrepreneurial spirit,” said Lee Orabona, President of New Century. The company was established in March 1997 and today serves as a managing general agent and wholesale broker with numerous offices throughout the United States. The company writes a variety of specialized insurance lines and is dedicated to representing companies of all sizes.

“The merger of these entities will further assist our ability to diversify our insurance program administrative services. We will continue to create additional market alternatives for our retail agents and brokers, as well as continue to provide outstanding underwriting results for our participating insurance carriers,” said Kathleen Turknette, President of SPFM. SPFM was established in 1997 and serves as an insurance program administrator for property owners and managers of residential and commercial real estate in California and Hawaii.

Americana Financial Service, Inc. is the corporate entity for five highly successful insurance organizations, each providing a wide array of insurance solutions. • Americana Program Underwriters, Camp Hill, PA• The Benefits Group, Metuchen, NJ • Capitol Payment Plan, Albany, NY and • New England Benefit Companies and • BrokerNetUSA, both in Warwick, RI.

American Wholesale Insurance Group, Inc., (www.AMWINS.com) now comprises these eight companies.