Agency Consolidation Gaining Momentum… Outlook Remains Cloudy; WFG Capital Advisors Analysis Indicates that 2004 Could Record Setting Year for Announced Transactions

HARRISBURG, Pa. Oct. 19, 2004 - W FG Capital Advisors, a leading investment banking firm specializing in the insurance industry announced today that agency consolidation will likely achieve record results for 2004 but the outlook for 2005 remains unclear.

According to Steven Wevodau, Managing Principal of WFG, "2004 announced agency acquisitions will more than likely outpace prior years by at least 25 percent. Insurance brokers continue to make a significant impact in consolidation representing 53 percent of all announced deals as of September 30 and already outpacing their total 2003 results by 10 percent." He added, "As product rates continue to soften and stabilize, public company brokers are accelerating their buying pace in order to close the gap on declining organic revenue gains."

"There are several developing factors that may re-shape the consolidation pace during 2005. The direction of product rates, long term capital gains rates, and the impact that the banks have on agency consolidation are all key dynamics that may shift the pace during 2005," according to Wevodau.

Robert Lieblein, another Managing Principal of WFG mentioned, "The recent Elliot Spitzer case against Marsh may redefine the entire insurance brokerage segment and their appetite for acquisitions during the upcoming year. This is probably the most salient issue facing the market today and is too difficult to predict its outcome." Lieblein added, "New entrants such as private equity groups are beginning to make some significant headway into the market while financial institutions appear to be retrenching. The combination of these two segments will have significant impact on the marketplace in the upcoming year as well."

WFG will be releasing complete analysis and results in its 2005 Financial Insights M & A Sourcebook in January. Interim statistics can be obtained by subscribing to WFG's Free Monthly Financial Insights report by visiting www.wfgca.com and selecting the Financial Insights icon on the home page. WFG also offers its Broker Insights publication that provides in depth research on all leading insurance industry brokers. Broker Insights can be purchased by visiting http://www.wfgca.com/publications-binsights.php

About WFG Capital Advisors :

WFG Capital Advisors, based in Harrisburg, Pennsylvania, is a leading investment banking and financial advisory firm for the insurance industry.

WFG Capital Advisors Media Contacts:
Steven S. Wevodau, Managing Principal
Tel: 717.780.7802 swevodau@wfgca.com 

Robert J. Lieblein, Managing Principal
Tel: 717.780.7801 rlieblein@wfgca.com 

Paul Feldman, Director of Communications
Tel: 717-780-7804 pfeldman@wfgca.com