COUNTRY and Cotton States Announce Transaction Closings

COUNTRY and Cotton States Announce Transaction Closings 


ATLANTA, Jan. 3  /PRNewswire/ -- COUNTRY Insurance & Financial Services of
Bloomington, Ill. announced today the closing of two transactions with Cotton
States Insurance Group of Atlanta.  Under the first transaction, Cotton States
Life Insurance Company merged with a subsidiary of COUNTRY Life Insurance
Company.  In the second transaction, Cotton States Mutual Insurance Company
pooled premiums and losses with those of the COUNTRY property/casualty group.

Both transactions were effective Jan. 1, 2005.

As a result of the merger, Cotton States Life Insurance shareholders receive
$20.25 cash for each share of outstanding common stock of Cotton States Life
Insurance Company, as stated in the Agreement and Plan of Merger. Cotton States
Life Insurance Company is now a privately held company.  LaSalle Bank, as
exchange agent, will mail instructions regarding the payment process this week
to Cotton States Life shareholders.

The property/casualty alliance allows the COUNTRY property/casualty group to
increase its geographic spread of risk and financial strength, and to share
products, resources and knowledge among its affiliated companies.  The alliance
with the Cotton States companies increases the size of the COUNTRY
property/casualty group by about 25 percent.  In addition to the Cotton States
property/casualty companies, the group consists of COUNTRY Mutual Insurance
Company, Bloomington, Ill.; Middlesex Mutual Assurance Company, Middletown,
Conn.; Holyoke Mutual Insurance Company in Salem, Salem, Mass.; and the MSI
property/casualty companies, Arden Hills, Minn.

Cotton States companies will retain their names and brand and keep their home
office operations in Atlanta. Policyholders will continue to work with their
Cotton States agents and policies will not be affected by these transactions.

"We have known Cotton States for some time, and we share many similar
characteristics," says COUNTRY CEO John Blackburn.  "We each have long
histories built on strong ethics and principles, agents and employees who value
client service, and multi-product lines to secure the financial security needs
of clients.  By working together we can accomplish so much more to the benefit
of our companies and our clients."

The new relationship with COUNTRY allows Cotton States Mutual and its
subsidiary, Shield Insurance Company, to share the COUNTRY property/casualty
group's A.M. Best rating of A+ (Superior).

About COUNTRY

COUNTRY Insurance & Financial Services and its alliances serve more than one
million households and businesses throughout the United States.  Founded in
1925, COUNTRY has 3,000 employees and 2,000 exclusive COUNTRY agents in 14
Midwestern and Western states who offer a full range of property/casualty, life
and annuity products, as well as financial and estate planning services. The
insurance companies of COUNTRY Insurance & Financial Services are consistently
rated A+ (Superior) by A.M. Best.  With these Cotton States transactions, the
COUNTRY insurance group has about $1.9 billion of property/casualty income
premium and $580 million in life income premium.  For additional information,
visit http://www.countryfinancial.com/ .

About Cotton States

Cotton States Insurance is a group of companies that has been providing quality
insurance products to customers in the Southeast since 1941, with products for
auto, home and life.  It has approximately 325 Cotton States employees and 260
exclusive Cotton States agents in four Southeastern states. The Group's product
portfolio is complemented with specialty products that are marketed through its
two brokerage operations.  The Cotton States Insurance Group includes Cotton
States Mutual Insurance Company, Shield Insurance Company and Cotton States
Life Insurance Company, including its two subsidiaries Cotton States Marketing
Resources, Inc. and CSI Brokerage Services, Inc.  For additional information,
visit http://www.cottonstatesinsurance.com/. 

DATASOURCE: COUNTRY Insurance & Financial Services



CONTACT:  Melinda Zehr of COUNTRY Insurance & Financial Services,

[phone]; or Linde A. Miscio of Cotton States Insurance Group,

[phone]



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

http://www.countryfinancial.com/ 



Company News On-Call:  http://www.prnewswire.com/comp/208850.html 

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