National Press Release

QUINCY, Mass., June 30 /PRNewswire/ -- The Arbella Insurance Group today announced that it has received approval for new private passenger auto rates that will result in an overall average annual rate decrease of 8.7 percent from last year. The company estimates that this will add another $4.5 million to the discounts it has already provided to its customers, saving its customers a total of over $30 million. Arbella, the third largest auto insurer in Massachusetts, earlier this year lowered rates by an average 7.7 percent following the state's adoption of "managed competition." The latest rate reduction comes on the heels of a recent regulatory filing and will be effective on July 1.

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"Many Arbella drivers enjoy rate decreases of 25 percent or more over their 2007 rate. We are constantly evaluating market conditions and the new competitive environment and always looking for new ways to save our customers more money on their auto insurance premiums," said John Donohue, Chairman, President and CEO of Arbella.

Among the conditions that allow Arbella to trim rates further is the decision to no longer use the driving experience of deferred drivers to determine the rates of the main policyholder. A deferred driver is a household member listed as a potential driver on a customer's policy. Arbella also made refinements to the company's "Customer Care" package of discounts and incentives that were introduced earlier this year.

Arbella will continue to offer an industry-leading 20 percent discount for those customers who have both auto and homeowner's policies with Arbella. They will receive a 20 percent discount off of homeowners and 5 percent off auto policies. The auto discount will include insurance policies for condominiums and rentals as well as for customers whose homes are insured by the Commonwealth's FAIR plan.

"Arbella has vowed to be among the most competitive auto insurers in the state and drivers should check us out before making any new decisions about their insurer," Donohue said.

About Arbella Insurance Group

Established in 1988, the Arbella Insurance Group (http://www.arbella.com) is a $674M company with more than $1B in assets headquartered in Quincy, Massachusetts. Arbella is a customer-focused regional group of five property and casualty insurance carriers, which provides personal and business insurance in Massachusetts, business insurance in Rhode Island, and personal insurance in Connecticut. Since the state moved to managed competition in April, most Arbella customers have seen up to 28% decreases under the new pricing policy. Arbella continues to lead the way among insurers under the state's new system.

SOURCE Arbella Insurance Group