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Branch net premiums written as a percentage of total net premiums written were 42.2%, 45.2% and 46.9% in 2000, 1999 and 1998, respectively. Net premiums written from branch operations decreased 19.8% in 2000 compared with 1999 and decreased 6.9% in 1999 compared with 1998. 

Agency net premiums written as a percentage of total net premiums written were 57.8%, 54.8% and 53.1% in 2000, 1999 and 1998, respectively. Net premiums written from agency operations decreased 9.2% in 2000 compared with 1999. Net premiums written from agency operations remained virtually flat in 1999 compared with 1998. 

Exchange Services:  Operating revenues from exchange transactions increased 44.5%, 13.7% and 18.5% in 2000, 1999 and 1998, respectively. The increase in revenue for these exchange services resulted from ongoing marketing efforts and the increased use of §1031 exchanges by taxpayers to defer capital gain taxes. On September 15, 2000, the Internal Revenue Service issued Revenue Procedure 2000-37, which provides a safe harbor for reverse exchanges. The original safe harbors, which established procedures to follow for standard exchange transactions, excluded the more complicated reverse transactions. The Company has dedicated a separate subsidiary to assist clients in structuring this type of exchange. 

