Flexpoint Partners Announces Acquisition of Norwich Group, Inc. and its Affiliated Companies

CHICAGO, IL, March 7, 2007 - Flexpoint Partners, LLC announced today that it has acquired a majority interest in Rosemont, PA-based Norwich Group, Inc. and its affiliated companies via a newly formed holding company. Norwich is a specialist in the development, implementation and administration of commercial insurance products targeted to narrowly-defined industry segments. In connection with the acquisition, Flexpoint will provide capital to Norwich to support the company's plan to increase its underwriting participation in the insurance programs it manages. The company's co-founders, Kirby Hill and William McPherson, will continue to serve as Chief Executive Officer and President, respectively, and will maintain minority equity ownership in the company.

Norwich was established in 1996, initially to provide comprehensive consulting services to program managers in the specialty insurance market, an approximately $10 billion industry. Norwich advises program managers on underwriting structures, risk management models, claims audits and underwriting audits. While the company has historically generated predominantly fee-based consulting income for its services, Flexpoint's investment will provide the equity capital required for Norwich to increase its risk sharing capacity for its client's programs. Norwich participates in underwriting risk via its wholly-owned Bermuda-based reinsurance company.

"We are excited by the opportunity to partner with Kirby Hill and Will McPherson," said Flexpoint Principal Chuck Glew. "The disciplined approach to underwriting and program management they have demonstrated over the ten-year operating history of Norwich will provide an outstanding platform for us to participate in the most attractive segments of the program insurance market."

"I am excited about this partnership with Flexpoint," said Mr. Hill. "Flexpoint's commitment to Norwich gives us the opportunity to capture a portion of the underwriting profits which we help our clients achieve through our consulting services. Flexpoint has a deep understanding of specialty insurance, and will be an outstanding partner as we accelerate our evolution from primarily fee-based consultancy to a full service insurance company."

Flexpoint's Principals have previously invested in a variety of insurance businesses, including First Acceptance Corporation (NYSE: FAC), a nonstandard automobile insurance company, and NLASCO, Inc. (via Flexpoint's investment in Affordable Residential Communities (NYSE: ARC)), a leading provider of homeowners insurance for low-value dwellings and manufactured homes.

Sandier O'Neill and Partners, L.P. acted as financial adviser to Norwich on the transaction.

About Norwich Holdco, LLC

Norwich Holdco, LLC serves as a full-service manager of specialty program insurance. The company provides comprehensive consulting services to general agents in the program insurance market and also participates in the underlying risk of a select group of insurance programs that it currently helps manage. For more information, visit www.norwichgroup.com.

Media Contact At Norwich:
Kirby Hill 610-581-7507

About Flexpoint Ford, LLC

Flexpoint Ford, LLC is an equity investment firm focused on the healthcare and financial services industries. Flexpoint seeks to build relationships with executives and companies who look for Flexpoint to be a value-added partner. Flexpoint aims to invest $10 to $100 million of equity in each opportunity.