American Family CEO Harvey Pierce to Retire at Year’s End; David Anderson Elected as Successor

Madison, Wis. (Feb. 14, 2006) — The Board of Directors of American Family Mutual Insurance Company today accepted the retirement resignation of CEO Harvey R. Pierce, effective Dec. 31, 2006, and elected David R. Anderson chairman and chief executive officer, effective Jan. 1, 2007.

The board unanimously approved Pierce’s recommendation that Anderson, currently American Family’s president and chief operating officer, be elected to the top position in the company.

Pierce will end a 44-year career with American Family with his retirement. The board unanimously approved his recommendation that Anderson be elected to the company’s top executive position.

“Dave Anderson is, without question, the most qualified individual to serve as CEO of American Family,” Pierce said. “His strong background in finance and technology, combined with his thorough understanding of the fundamentals of our business, ensure that this company will have strong leadership in the years ahead.”

Anderson has served as president and chief operating officer since February 1999. He joined American Family in 1975 as budget director and later served as financial planning director and accounting director. In 1996, he was elected vice president of information services, where his major responsibilities included research, development, implementation of information systems and using technology to meet business needs.

Anderson says the search and selection process for his successor as president should enable him to make a recommendation to the Board by November.

Anderson is a native of Plymouth, Wis., and graduated from the University of Wisconsin-Madison, earning a bachelor’s degree in finance and marketing and an MBA. He and his wife, Mary, have five children. Anderson is a member of the board of directors of Second Harvest Food Bank of Southern Wisconsin, the Greater Madison Chamber of Commerce, United Way of Dane County and Future Madison Housing Fund. He is a past chair of the United Way of Dane County annual fundraising campaign.

Harvey Pierce joined American Family as an agent in 1963, and served in many field management positions during his career. He was elected president and chief operating officer in 1990, and has served as chairman and chief executive officer since 1999. He and his wife, Delores, have four children.

Pierce held top leadership positions as chair of several key insurance industry organizations, including the Property Casualty Insurers Association of America and the Insurance Institute for Highway Safety. He is the driving force behind the commitment to build the new American Family Children’s Hospital in Madison.

Based in Madison, Wis., American Family Insurance offers auto, homeowners, life, health, commercial and farm/ranch insurance, plus financial services, in 17 states. Founded in 1927, the company employs more than 8,300 people (including 3,800 in Madison) and sells its products through 4,000 independent contractor agents. American Family ranks 313th on the Fortune 500 list and is the nation’s 3rd largest mutual property/casualty insurance company.