APPLIED UNDERWRITERS ADDS TWO VICE PRESIDENTS; ELLEN GARDINER AND SHEILA LENAGH PROMOTED

SAN FRANCISCO, CA - March 31, 2005 - Applied Underwriters, the industry leader in integrated workers' compensation solutions (www.applieduw.com), today announced the promotions to Vice President of Ellen Gardiner and Sheila Lenagh.

"We're delighted to promote Ellen Gardiner and Sheila Lenagh to Vice President," said Steven Menzies, President of Applied Underwriters. "Both Ms. Gardiner and Ms. Lenagh have demonstrated outstanding leadership within our highly competitive industry, and we look forward to applying their impressive skill sets within their respective areas of expertise to help our firm sustain and increase its leadership edge. Thanks to talent like theirs, Applied Underwriters is the industry leader in integrated workers' compensation solutions," he said.

Gardiner will continue in her role as Chief Actuary and assume new leadership responsibilities as Vice President. Lenagh will continue to manage taxation and assume responsibility for regulatory compliance for the California Insurance Company.

Ms. Gardiner is a Fellow of the Casualty Actuarial Society and a member of the American Academy of Actuaries. She has served as Chief Actuary at Applied Underwriters since November 2003. Prior to joining Applied, she was responsible for actuarial operations at Argonaut Insurance Company; and she also held actuarial positions at Firemen's Fund Insurance Company and at USF&G.

Ms. Lenagh is a Certified Public Accountant and a member of both the Nebraska Society of Certified Public Accountants and the American Institute of Certified Public Accountants. She has served as Director of Tax for Applied Underwriters since December 2000. Her previous professional experience includes serving as Senior Tax Manager at Deloitte.

For further information, please contact Carl DeBarbrie, Applied Underwriters' senior vice president, at Tel. 415/656-5000, or via email, debarbrie.carl@applieduw.com.

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