AMERICAN HORIZON INSURANCE COMPANY ORDERED INTO LIQUIDATION

Chicago, Illinois -- Illinois Insurance Director Nat Shapo announced today that the Cook County Circuit Court issued a Liquidation Order With a Finding of Insolvency on July 11, 2002, against American Horizon Insurance Company, Lincolnshire, Illinois. The court action was taken following the Department of Insurance's determination that the company was insolvent by more than $2.5 million, and in concurrence with the March 31, 2002, financial statement filed by the company indicating a negative policyholder surplus of $2.8 million.

American Horizon is a wholly owned subsidiary of American Holdings Incorporated, a Delaware domiciled insurance holding company. The company commenced operations in June 1999 when American Holdings Incorporated acquired Arcadia General Insurance Company. The current name was adopted in conjunction with that transaction.

The company is licensed in 13 states, concentrating its writings primarily in private passenger automobile coverages. The company has been in runoff since June 2001, and has written no new business during 2002.

Originally domiciled in Arizona, American Horizon re-domesticated to Illinois on December 21, 2001, and simultaneously merged with American Horizon Property and Casualty, an Illinois domestic affiliate. American Horizon Insurance Company was the surviving entity. At December 31, 2001, the companies reported gross written premium of approximately $33,300,000.

Any remaining business currently active in a state in which the company was licensed will be canceled 31 days from the date of the entry of the Order of Liquidation, the policy's expiration date, or when canceled by the named insured, whichever occurs first.

The Illinois Insurance Guaranty Fund will be responsible for the covered claims of American Horizon Insurance Company's Illinois policyholders. The Order of Liquidation contains an injunction prohibiting suits against American Horizon outside of the liquidation proceedings.

Liquidation proceedings are being handled on behalf of the Director of Insurance by the Office of the Special Deputy Receiver, 222 Merchandise Mart Plaza, Suite 1450, Chicago, Illinois 60654; (312) 836-9500.