December 3, 2001

Canadian Branch of Reliance Insurance company ordered to be wound-up

The Office of the Superintendent of Financial Institutions Canada has announced that the Ontario Superior Court of Justice has ordered the Canadian Branch of Reliance Insurance Company ("Reliance") to be wound-up under the Winding-up and Restructuring Act. The provisional liquidator appointed by the Court is KPMG Inc., and the date of the wind-up order is December 3, 2001. .

Alex Kennedy, President and Chief Executive Officer of the Property and Casualty Insurance Compensation Corporation, which has been named as an Inspector in the liquidation said that Reliance was writing mainly commercial property and liability insurance and specialized in providing professional liability coverage for e.g. lawyers, engineers and architects, and for directors and officers. According to Mr. Kennedy, that specialized liability business is not covered by PACICC. He added "PACICC will work closely with the Liquidator to ensure that claims for loss or damage and claims for unearned premium which fall within PACICC's coverage are paid on a timely basis."

Reliance Insurance Company operated on a branch basis in all jurisdictions in Canada and had been running off its business.

PACICC is an industry-funded, not-for-profit corporation established by the property and casualty insurance companies in Canada to respond to the claims of policyholders under most policies written by insurers which have become insolvent.

Information about PACICC is available on its website at www.pacicc.com.