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UNITED AMERICA INDEMNITY, LTD. ANNOUNCES THE APPOINTMENT OF RICHARD L. DUSZAK, ROBERT A. LEAR AND DR. M. MOSHE PORAT TO BOARD OF DIRECTORS

MR. DUSZAK TO SERVE ON THE AUDIT COMMITTEE OF THE BOARD

George Town, Grand Cayman, Cayman Islands, April 5, 2005 – United America Indemnity, Ltd. (NASDAQ: INDM) today announced that it has appointed Richard L. Duszak, Robert A. Lear and Dr. M. Moshe Porat to its Board of Directors effective April 1, 2005. Mr. Duszak, a Certified Public Accountant, was also appointed to serve on the Audit committee of the Board of Directors.

Mr. Duszak retired from full-time employment as an audit partner in January 2000 after more than 36 years with the public accounting firm of KPMG LLP. He currently chairs The CEO Group, an organization of chief executive officers that functions as an advisory board. In March 2004, Mr. Duszak assumed the role of Chief Financial Officer of Pine Environmental Services, Inc., a privately owned company offering environmental monitoring, sampling and safety equipment. From 2003 to January 2005, Mr. Duszak was a director of Penn-America Group, Inc. He was also a member of the Penn-America Group, Inc.'s Audit and Compensation Committees and the Chairman of the Nominating and Corporate Governance Committee.

Mr. Duszak holds a B.S. degree (Magna Cum Laude) from LaSalle University. He has been engaged in numerous community activities with an emphasis on health related issues. He has qualified as an expert witness in accounting and financial matters in numerous jurisdictions.

Mr. Lear has been President and Chief Executive Officer of Penn Independent Corporation since September 1996 and previously served as Executive Vice President, Finance. He was Vice President, Finance and Chief Financial Officer of Penn-America Group, Inc. from July 1993 until March 1995 and served as a director from 1993 to January 2005. Mr. Lear has been a director of PIC Holdings, Inc. since October 1997. He was a director of Dynasil Corporation of America from February 1998 to June 2003.

Mr. Lear holds a B.S. degree in accounting from Penn State University. He served from July 2002 to June 2004 on Penn State's Alumni Association Council as an ex-officio member and is currently Immediate Past President of Penn State Abington Alumni Society Board. Prior to joining Penn Independent, Lear had more than 15 years of public accounting experience, specializing in the insurance industry. He has been a certified public accountant since 1972. Lear is a member of the American Institute of Certified Public Accountants and the Pennsylvania Institute of Certified Public Accountants. Fox Paine & Company nominated Mr. Lear for election as a director pursuant to its rights under a Shareholders Agreement.

Dr. Porat has been the Dean of the Temple University School of Business and Management since August 1996; and previously was the Joseph E. Boettner Professor and Chairman of the Risk Management, Insurance and Actuarial Science Department at the Temple University School of Business and Management for eight years.

Prior to joining Temple University, Dr. Porat was the Deputy General Manager of IHUD Insurance Agencies Ltd., an international insurance brokerage firm. Dr. Porat serves on the boards of the Penn Economy League, the Philadelphia Workforce Investment Board, the America-Israel Chamber of Commerce and the Master High Charter School, all privately owned and/or not-for-profit organizations. Previously, Dr. Porat was a director of Penn-America Group, Inc. He was also a member of Penn-America Group, Inc.'s Audit and Nominating and Corporate Governance Committees and was the Chairman of the Compensation Committee.

“Our new directors bring extensive financial, administrative, and insurance industry experience to the board,” said Saul Fox, Chairman of United America Indemnity. “They are superb intellects and leaders, and we look forward to their expertise and counsel as we position United America Indemnity for future growth and success.” Mr. Fox is also Chief Executive of San Francisco-based Fox Paine & Company, LLC, whose affiliated private equity funds acquired a controlling interest in United America (then named United National Group, Ltd.) in September 2003 and remain the largest shareholder in United America Indemnity.

United America Indemnity also announced that Angelos J. Dassios, a director resigned from the board effective March 31, 2005. Mr. Dassios served as a director since September 2003, and had been nominated for election as a director by Fox Paine & Company pursuant to its rights under its Shareholders Agreement.

About United America Indemnity, Ltd.:

United America Indemnity, through its wholly-owned operating subsidiaries which include United National Group, Penn-America Group, Inc. and Penn Independent Corporation, is one of the leading specialty property and casualty insurers in the industry as well as a significant originator of and placement agent for specialty property and casualty insurance coverage. United America Indemnity is a holding company formed under the laws of the Cayman Islands and its U.S. insurance subsidiaries are either licensed or authorized to write surplus lines or specialty admitted business in all states. With a combined operating history of more than one century, United America Indemnity's underwriting network includes approximately 135 professional general agents and its focus centers on self-generated proprietary products, niche programs and brokered lines. Its non-U.S. operations consist of recently formed Barbados-based and Bermuda-based insurance companies.

About Fox Paine:

Fox Paine & Company, LLC manages investment funds in excess of $1.5 billion that provide equity capital for management buyouts, going private transactions, and company expansion and growth programs. Fox Paine engages exclusively in friendly transactions developed in cooperation with a company's management, board of directors, and shareholders. The Fox Paine funds are managed on behalf of over 50 leading United States and international financial institutions, including public pension systems, Fortune 100 corporate pension plans, major life and property & casualty insurance companies, money center and super regional commercial banks, investment banking firms, and university endowments.

Safe Harbor Statement

This release contains forward-looking information about United America Indemnity and the operations of United America Indemnity that is intended to be covered by the safe harbor for forward-looking statements provided by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that are not historical facts. These statements can be identified by the use of forward-looking terminology such as "believe," "expect," "may," "will," "should," "project," "plan," "seek," "intend," or "anticipate" or the negative thereof or comparable terminology, and include discussions of strategy, financial projections and estimates and their underlying assumptions, statements regarding plans, objectives, expectations or consequences of the transactions, and statements about the future performance, operations, products and services of the companies.

The business and operations of United America Indemnity is and will be subject to a variety of risks, uncertainties and other factors. Consequently, actual results and experience may materially differ from those contained in any forward-looking statements. Such risks, uncertainties and other factors that could cause actual results and experience to differ from those projected include, but are not limited to, the following: (1) the ineffectiveness of United America Indemnity's business strategy due to changes in current or future market conditions; (2) the effects of competitors' pricing policies, and of changes in laws and regulations on competition, including industry consolidation and development of competing financial products; (3) greater frequency or severity of claims and loss activity than United America Indemnity's underwriting, reserving or investment practices have anticipated; (4) decreased level of demand for United America Indemnity's insurance products or increased competition due to an increase in capacity of property and casualty insurers; (5) risks inherent in establishing loss and loss adjustment expense reserves; (6) uncertainties relating to the financial ratings of United America Indemnity's insurance subsidiaries; (7) uncertainties arising from the cyclical nature of United America Indemnity's business; (8) changes in United America Indemnity's relationships with, and the capacity of, its general agents; (9) the risk that United America Indemnity's reinsurers may not be able to fulfill obligations; and (10) uncertainties relating to governmental and regulatory policies. The foregoing review of important factors should be read in conjunction with the other cautionary statements that are included in United America Indemnity's Annual Report on Form 10-K for the fiscal year ended December 31, 2004, as well as in the materials filed and to be filed with the U.S. Securities and Exchange Commission (SEC). United America Indemnity does not make any commitment to revise or update any forward-looking statements in order to reflect events or circumstances occurring or existing after the date any forward-looking statement is made.

Contact:

Richard S. March
General Counsel
United America Indemnity, Ltd.
Phone: 610-660-6816