John E. Savage Roger S. Pondel/
Julie Crandall
(818) 871-2001 (310) 207-9300
AMWEST INSURANCE GROUP, INC. RESPONDS TO
A.M. BEST'S RATING CHANGE
--------------------------------------------------------------------------------
CALABASAS, CA - August 30, 2000 - In response to A.M. Best's rating change
announcement with respect to Amwest Insurance Group, Inc. (AMEX:AMW) (PCXE:AMW),
John E. Savage, president and chief executive officer of Amwest stated, "Amwest
is making every effort to form a strategic alliance to raise additional capital
to improve our financial condition, specifically leverage and operational
performance. Our investment bankers, Cochran, Caronia & Co. LLC, have received
several inquiries that we are actively reviewing. In addition, we will evaluate
other proposals and options as are appropriate and that we believe will yield
the most favorable results for our company and its stockholders and
policyholders. We are developing certain arrangements and contingency plans to
provide our agents with the support they need."
Savage, commented further, "Our immediate objectives are to strengthen the
capital positions of the insurance subsidiaries, finalize negotiations on
revised terms for the bank loan, implement an updated business plan to improve
the operational performance of the insurance subsidiaries, and return Amwest to
profitability."
Amwest is a Calabasas-based insurance holding company underwriting surety and
property and casualty insurance through Amwest Surety Insurance Company, Condor
Insurance Company and Far West Insurance Company.
Certain statements contained in this news release regard matters that are not
historical facts and are forward-looking statements. Because such
forward-looking statements include risks and uncertainties, actual results may
differ materially from those expressed or implied by such forward-looking
statements. Factors that could cause actual results to differ materially
include, but are not limited to: Amwest's ability to form a strategic alliance
to raise additional capital and to improve the company's financial condition and
operational performance, the ability of the company to obtain a waiver or
amendment regarding a covenant included in the company's revolving bank credit
agreement, a deterioration in premiums written or losses incurred in the
company's surety and other specialty businesses, the lack of adherence by branch
personnel to company underwriting guidelines, a reduction in the investment
yield earned on the company's investment portfolio, or general economic decline.
The company undertakes no obligation to release publicly the results of any
revisions to these forward-looking statements that may be made to reflect events
or circumstances after the date hereof to reflect the occurrence of
unanticipated events.
# # #
