PC Mutual Companies Grow to Meet Need, While PC Stock Companies Need to Grow

(New York, NY) August 23, 2004 – Growth strategies and actual performance differ greatly between mutual and stock companies, according to a new study by Conning Research and Consulting, Inc.

“We found that the company structure and size was influential in a number of performance factors,” said Geri Riley, Analyst at Conning. “These factors included growth as well as risk tolerance, among others. Overall, stock insurers outperformed mutual insurers on an underwriting basis over the study period, yet the smaller mutuals tended to outperform the smaller stock insurers.”

The Conning Research study, “Mutuals and Stocks in the Property-Casualty Industry: How Does Your Company Grow?” reviewed statutory data from 1998 through 2002 for both stocks and mutuals.

“Clearly the easier capital access afforded the stock companies a leg up on setting and meeting more aggressive growth objectives” said Stephan Christiansen, Director of Research at Conning. “But the mission of mutuals is decidedly different than that of stock companies. Our study found that differences in geography, legal systems, line of business concentration and risk tolerance define the growth opportunities for mutual and stock insurers. Mutuals grow to meet the need, while stock companies need to grow to survive.”

“Mutuals and Stocks in the Property-Casualty Industry: How Does Your Company Grow?” may be purchased from Conning Research & Consulting, Inc., by calling (888) 707-1177 or by visiting the company’s Web site at www.conningresearch.com.

About Conning Research & Consulting, Inc.

The Conning name has represented excellence in independent insurance industry research for more than 90 years. As a result of its wealth of experience and intimate knowledge of the insurance industry, Conning understands industry challenges and opportunities and can provide in-depth insights and analyses. Conning provides both public and proprietary research as well as consulting services to the financial services industry. Conning has offices in New York and Hartford.