August, 2007
ARI SECOND QUARTER 2007 FINANCIAL RESULTS

Lawrenceville, NJ August 13, 2007 – ARI Insurance Companies today reported net income for the second quarter of 2007 of $1,130,000 and an underwriting profit of $279,000. The combined ratio was 92.1% for the quarter, a favorable comparison to the 94.9% in the prior year second quarter. David A. Gerth, ARI Senior Vice President and CFO said, "The Company continues to benefit from strong underwriting profits as a result of commitment to pricing integrity. We have also seen substantial growth in investment income due to a growing investment portfolio and favorable short term returns."

The Companies are very pleased with the results for the second quarter of 2007 and would like to thank all of our agents, staff and other business partners for their contribution to our success.

ARI specializes in commercial automobile insurance and will continue to differentiate itself in this marketplace.

ARI Insurance Companies Periods Ended June 30 (Amounts in thousands)
	Three Months Ended           June 30,		Six Months Ended           June 30,
	2007	2006	2007	2006
Direct Written Premiums	$11,575	$10,543	$20,977	$20,526
Net Written Premiums	9,996	9,418	18,242	18,212
Premiums Earned	8,680	8,406	16,810	16,658
Underwriting Gain	279	96	775	806
Investment Income	822	563	1,461	1,074
Net Income	$1,130	$666	$2,317	$1,878
Loss and Loss Expense Ratio	61.4%	62.1%	61.1%	60.2%
Underwriting Ratio	30.8%	32.8%	31.6%	32.0%
Combined Ratio	92.1%	94.9%	92.7%	92.3%

Contact at 609-882-7500

Karen S. Fulton President and CEO

David A. Gerth Sr. Vice President & CFO

J. Tucker Ericson Sr. Vice President