december 13, 2001

Canadian Millers' Mutual Insurance Company ordered to be wound-up

On December 13, 2001 the Ontario Superior Court of Justice , on the application of the Superintendent of Financial Services at the Financial Services Commission of Ontario, ordered Canadian Millers' Mutual Insurance Company ( "Canadian Millers' ") to be wound-up under the Winding-up and Restructuring Act. The provisional liquidator appointed by the Court is KPMG Inc. ("the liquidator").

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 "PACICC's first priority will be to work with the liquidator to determine who is entitled to a refund of prepaid ('unearned') premium". Mr. Kennedy urged policyholders affected by the failure of the company to replace their policies immediately. "PACICC", he added ,"will consider claims arising from events that occurred on or before the date of the wind-up order and up until December 31, 2001 when the policies are terminated by virtue of the court order."

Canadian Millers' was licensed in most jurisdictions in Canada and wrote mainly commercial property with some commercial liability and residential 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