Republic Companies Group, Inc. Announces Agreement in Principal With American Vehicle Insurance Company

DALLAS, March 27  /PRNewswire-FirstCall/ -- Republic Companies Group, Inc. (NASDAQ:RUTX) ("Republic") today announced that certain of its member companies have reached an agreement in principal with American Vehicle Insurance Company ("American Vehicle"), a wholly-owned subsidiary of 21st Century Holding Company, an insurance holding company.  The agreement in principal is subject to the parties entering into a definitive written agreement and American Vehicle providing the required security.  This arrangement will enable American Vehicle to underwrite general liability business and other commercial lines in various states through member companies of The Republic Group.

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Parker Rush, Republic's President and CEO, commented, "This is an excellent opportunity for our Insurance Services and Corporate segment to grow its written premium, secured by a substantial irrevocable letter of credit. We are pleased to be able to provide access to our markets through our unique combination of licenses and charters."

About Republic

Republic Companies Group, Inc. through a group of insurance companies and related entities provides personal and commercial property and casualty insurance products to individuals and small to medium-size businesses primarily in Texas, Louisiana, Oklahoma and New Mexico.  This focus on a large, rapidly growing region allows Republic to participate in profitable underserved niche opportunities. We have written insurance in Texas consistently throughout our entire 102-year history and have developed deep market knowledge and a loyal network of independent agents and managing general agents who provide us with access to what we believe are among the most profitable clients and market segments.  We are rated A- (Excellent) by A.M. Best Company, Inc. with a stable outlook.  We completed our Initial Public Offering in early August 2005.

Precautionary Statement Regarding Forward-Looking Information

Investors are cautioned that statements which relate to the future are, by their nature, uncertain and dependent upon numerous contingencies -- including political, economic, regulatory, climatic, competitive, legal, and technological -- any of which could cause actual results and events to differ materially from those indicated in such forward-looking statements. Additional information regarding these and other risk factors and uncertainties may be found in our filings with the Securities and Exchange Commission (available at http://www.sec.gov/ ). Unless otherwise required by law, we undertake no obligation to publicly update or revise any forward- looking statement, whether as a result of new information, future developments or otherwise. 

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DATASOURCE: Republic Companies Group, Inc.



CONTACT:  Michael E. Ditto, Esq., Vice President, General Counsel and

Secretary of Republic Companies Group, Inc., [phone]



Web site:  http://www.republicgroup.com/ 

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