Major inroads into Canadian market – La Capitale acquires UAFC (Canada) Inc.

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With Penncorp Life, La Capitale quickly gains foothold in rest of Canada – French mutual insurance company GMF assurances participates in acquisition

QUEBEC CITY, Aug 31, 2006 – La Capitale Civil Service Insurer Inc., a subsidiary of La Capitale Financial Group Inc., announced today that it has entered into a definitive agreement with Universal American Financial Corp. (NASDAQ: UHCO) to acquire 100% of the outstanding shares of UAFC (Canada) Inc. and its wholly-owned Canadian insurance subsidiary, PennCorp Life Insurance Company. PennCorp Life Insurance Company markets individual accident and sickness disability protection products across Canada through a field force of approximately 200 career insurance agents.

“This major life-insurance-sector acquisition for La Capitale Financial Group is part of our plan to grow beyond Quebec,” explained Robert St-Denis, President and Chief Executive Officer of La Capitale’s Personal Insurance Sector. “PennCorp’s network spans Canada, which ensures we will quickly establish a foothold in other provinces. We will also benefit from the complementary nature of our products, especially in hospitalization and disability insurance.”

PennCorp Life Insurance Company has approximately $250 million in assets. With more than 150,000 policyholders, the company generated more than $75 million in premiums in 2005 and has employees and financial security advisors working in 13 offices across Canada, including offices located in Montreal and Quebec City.

For this acquisition, La Capitale has partnered with a French mutual insurance company, GMF assurances, which will hold 30% of UAFC (Canada) Inc. GMF assurances is one of the leading personal insurers in France. Its participation in this transaction consolidates a partnership that dates back to 1988,” said Jean-Yves Dup�r�, Chairman of the Board of La Capitale. “Like La Capitale, GMF assurances serves the public sector, where it insures one in three employees. As mutual insurance companies, we share the same values and concerns, which means we have a shared vision of growth. As part of this long-term partnership, GMF assurances will undoubtedly play a key role in future acquisitions by La Capitale.”

The acquisition is subject to regulatory approval.

About La Capitale

A strong Quebec mutual financial group, La Capitale has provided customers with value-added financial products-insurance, savings, loans, retirement-for over 65 years. La Capitale Civil Service Mutual, operating through La Capitale Financial Group, brings specialized subsidiaries together to offer its customers unmatched products and services. With a strong presence throughout Quebec, La Capitale Financial Group has nearly $2 billion in assets, employs 1,700 people and provides financial products and services to 600,000 members working for over 900 institutions in the Quebec public and broader public sectors, as well as the general public. For more information, visit