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October 26, 2006

Western National Insurance Group Announces Third Quarter Results

Western National Insurance Group today announced their 2006 financial results through September 30. The Group results now include the Farmers Home Mutual group of companies due to the completion of that transaction in June 2006, with inter-company pooling effective as of January 2006. Comparisons to 2005 are based on financial statements as they would have existed had the two companies been pooled as of the referenced dates.

Total Assets increased $43.9 million from 12/31/05 (10.2%), and now total $474.4 million. Net written premium for the Group increased $14.3 million, or 9%, from the same time last year.

Despite a repeat of 2005's significant tornado and hail loss activity in August and September of 2006, the overall Group Loss Ratio declined from 56.0% to 53.6%, and Loss Adjustment Expense declined from 13.5% to 12.2%. Underwriting Expense remained essentially unchanged at 25.1% (versus 25.3% at 9-30-05). The resulting Combined Ratio was 90.8%, as compared to 94.8% at the same time last year. With Underwriting Gain up 175% (to $10.4 million from $3.8 million), Net Income After Tax was $15.8 million, and ending Surplus was $162.6 million (up $25.0 million, or 18.0%).

"2006 has continued the profitable trends of the last 4 years, once again exceeding U.S. Property & Casualty industry performance as a whole," said Stuart Henderson, president & chief executive officer. "We expect to meet our premium growth goals for 2006, and to once again exceed our profit goals. The affiliation and integration with Farmers Home Group has been successfully completed. We once again take this opportunity to thank our employees, independent agent partners, loyal policyholders, and other business partners for helping us to achieve these superior financial results."

Western National Insurance Group consists of five regional Property and Casualty Insurance companies with annualized direct written premium in excess of $245 million. Western National Mutual Insurance Company is headquartered in Edina, Minnesota and writes both personal and commercial lines in MN, WI, SD, ND and IA. Western National Assurance Company maintains offices in Seattle, Washington, and writes personal and commercial lines in WA and OR. Farmers Home Mutual Insurance Company, Western Home Insurance Company and Pioneer Insurance Company are also now headquartered in Edina and write personal lines in MN, WA, NV and UT. All of the companies distribute their insurance products solely via the Independent Agency distribution system.

For further information, contact:

Mary S. Manley
SVP Corporate Affairs & Administration
952-921-3820
mary.manley@wnins.com