Dallas National Insurance Company Strengthens its Board of Directors and Posts a Strong Third Quarter

Nehls cites profitable growth and positive changes

December 20, 2007 – Dallas National Insurance Company has recorded another strong quarter, ending the first three quarters of 2007 with net income of $9.4 million on net premiums of $66.7 million.

Dallas National’s President Chris Nehls stated “the Company continues to grow profitably in our core businesses of contractor’s general liability and workers’ compensation insurance.” Nehls added that “the Company had net premiums for the first three quarters of 2007 about equal to all of 2006 and year to date net income for 2007 that exceeds 2006.”

The Company has also added five new outside directors: Mick Thompson, the Banking Commissioner for the State of Oklahoma; Mike Pickens, the former Insurance Commissioner for Arkansas; Laura Wehrle, a former insurance executive and workers’ compensation expert; Marta Prado, a successful business executive from Florida; and Betty Patterson, a retired Deputy Commissioner of Finance from the Texas Department of Insurance. Nehls commented that “these new directors will provide the direction necessary as the Company moves to more of a national presence.”

Dallas National Insurance Company is licensed to provide property and casualty insurance in 35 states and the District of Columbia. The Company is based in Dallas, Texas and has assets and surplus totaling $248.0 million and $77.4 million, respectively.

Contact: Chris Nehls, 972-233-0178 Ext. 245, cnehls@dallasnationalins.com