February 26, 2008

WASHINGTON, D.C., Feb. 26, 2008 - ULLICO Casualty Group Inc. (“ULLICO Casualty”) has aligned with Hudson Insurance Company (“Hudson”) to offer enhanced Fiduciary and Union Liability insurance programs. Hudson is rated "A" (Excellent), financial size category XV (surplus greater than $2 billion) by A.M. Best. Hudson is the lead primary insurer of Odyssey Re Holdings Corp., the holding company for one of the world's largest underwriters of property and casualty insurance and reinsurance with shareholder equity in excess of $2.4 billion. ULLICO Casualty's fiduciary program will include higher limits of liability, up to $15 million for multiemployer benefit funds and $5 million for their union liability program for labor unions and their leaders. Both product offerings will also include significant policy enhancements.

ULLICO Casualty is offering the unique blend of "duty to defend" policy forms with choice of counsel selected by the insured. The fiduciary policy also enhances coverage for liabilities imposed under Health Insurance Portability and Accountability Act (“HIPAA”), the recent Pension Protection Act (“PPA”), and situations in which trustees face liability for non-fiduciary duties. ULLICO Casualty has enhanced its Union Liability program, which already provides broad coverage, to now include domestic partner coverage as well as third-party discrimination liability coverage, via endorsement.

"As the risk solutions provider for organized labor and multiemployer benefit plans, we chose to issue our market leading Fiduciary Liability insurance policies with Hudson because they are a leading specialty insurance company in the United States," said Daniel Aronowitz, President of ULLICO Casualty. "Our alignment with Hudson combines the fiduciary expertise and experience of ULLICO Casualty with the safety and security of the large policyholder surplus of Hudson."

ULLICO Casualty pioneered coverage for the Closing Agreement Penalty program of the IRS, which has developed into a significant protection for benefit plans. Now ULLICO Casualty is the first to respond to the new 502(c) liabilities imposed by the PPA. Our new policy further demonstrates why ULLICO Casualty is the market leader in protecting trustees from emerging regulatory risks and liabilities.

ULLICO Casualty staff will continue to handle underwriting, marketing and claims management for the programs, as they have proven experience and expertise in executing these critical functions. The new Fiduciary and Union Liability programs are available
through ULLICO Labor Protection Group, a risk purchasing group filed and approved in Washington, D.C. and insured by Hudson. The purchasing group is already approved in forty states, with new states being added weekly. The use of a purchasing group allows regulatory flexibility and speed to market to offer our products in an expedited manner for targeted niches with similar members, multiemployer funds, labor unions and related entities.
Funds, labor unions and brokers may obtain more information from Daniel Aronowitz or John O'Brien, Assistant Vice President Marketing, or call toll-free at 888. 315.3352, prompt 3.

ULLICO Casualty Group, Inc.
1625 Eye Street
Washington, DC 20006

Download E-Connect here.