Moody’s Lowers and Will Withdraw Ratings on Acceptance Insurance Companies

New York, May 18, 2004 -- Moody's Investors Service has lowered and will withdraw its ratings on Acceptance Insurance Companies Inc. and related subsidiaries. During the fourth quarter of 2002, the company suspended the dividend payments on its trust preferred securities (rated C prior to withdrawal). The company's two insurance operating subsidiaries are under regulatory supervision/rehabilitation. The ratings will be withdrawn because of the run-off status of the company's operating subsidiaries. Please refer to Moody's Withdrawal Policy on moodys.com.

Published on May 18, 2004

The following rating was withdrawn: AICI Capital Trust -- Preferred Securities withdrawn at C; The following ratings were lowered and will be withdrawn: American Growers Insurance Company -- Insurance financial strength to Caa2 from B2 and will be withdrawn; Acceptance Insurance Company -- Insurance financial strength to Ca from Caa1 and will be withdrawn.

Acceptance Insurance Companies, Inc. is a Council Bluffs, Iowa-based holding company whose insurance subsidiaries underwrote crop insurance. For the nine months ending 2003, the last period for which public GAAP data is available, Acceptance reported a net loss of $17.6 million and a net stockholders' deficit of $71.7 million.

New York
Ted Collins
Managing Director
Financial Institutions Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653
New York
Paul Bauer
Analyst
Financial Institutions Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653