NJM News

April 22, 2008

Contact: Patrick W. Breslin, 609-883-1300, ext. 7070

NJM Writes to Workers' Compensation Policyholders

Responds to recent Star-Ledger articles

WEST TRENTON, N.J. — New Jersey Manufacturers Insurance Group, the state's leading provider of Workers' Compensation coverage, has written to its approximately 7,000 policyholders regarding the Newark Star-Ledger's three-day front-page series about perceived shortcomings in the Workers' Compensation system in New Jersey.

The letter by President and CEO Anthony G. Dickson tells these business leaders how the Workers' Compensation system effectively balances the needs of employers and employees. Workers' Compensation provides prompt, effective medical care and temporary or permanent disability benefits to injured workers, while permitting reasonable containment of costs. A recent white paper about the system by the New Jersey Policy Research Organization has been mailed with Mr. Dickson's letter.

The letter further reminds policyholders of NJM's high level of service to claimants in the form of specialized care tailored to their specific work-related injury or illness. Employers benefit greatly from NJM's service tradition as well, with stringent oversight against fraud and prudent stewardship of policyholder resources working in their interests.

Workers' Compensation coverage was the first line written by the Company when it was founded in 1913, and NJM has been the leading provider in the Garden State since the 1940s. NJM believes that, while any organization should continuously analyze its performance and explore possible improvements, overall the current Workers' Compensation system works reasonably well. NJM favors a constructive dialogue that examines problems while also taking care to preserve the strengths and the balance of the current system — importantly including the costs to employers who choose to maintain and bring jobs to New Jersey.

NJM operates for the benefit of policyholders. The Company has returned more than $4.5 billion in dividends to policyholders since 1918, including $46.1 million for Workers' Compensation in 2007.

NJM Insurance Group wrote $500.3 million in Workers' Compensation premiums in 2007.