SPOKANE, WA – March, 2, 2004 – Western United Life Assurance announced today that the Washington State Office of the Insurance Commissioner has placed the company into receivership for the purposes of rehabilitation. Under the terms of the receivership, Western United’s policyholders will have the maximum protection against the financial adversity of the company’s parent, Metropolitan Mortgage. Metropolitan recently filed for protection under Chapter 11.

“This restructuring will help us achieve separation from our parent company while we continue to conduct business,” said President Dale Whitney. “We remain dedicated to continuing a high level of service and prompt claims payments for our policyholders. We are confident Western United will emerge from receivership as a healthy and strong company.”

Unlike other receiverships instigated by state insurance departments, this receivership does not signal insolvency of Western United. The company is under rehabilitation under the auspices of the Insurance Commissioner while its parent company is seeking to reorganize under Chapter 11.

The receivership was triggered by the OIC concern over a recent one-time settlement with the Internal Revenue Service. Metropolitan had procured tax shelters on Western United’s behalf in 1998. While the total amount of the settlement is $18.4 million, approximately $1 million will be paid by Western to the IRS in cash, and $17.4 million will be paid by Metropolitan through a reduction in taxes. This settlement triggers an obligation from Western to Metropolitan of approximately $17.4 million under a tax sharing agreement and an obligation from Met to Western of $11.2 million pursuant to a guaranty under an amendment to the tax sharing agreement. The obligations will offset each other resulting in a net reduction of Western’s capital and surplus of $6.2 million.

Due to the status of Metropolitan under chapter 11, Western United has decided to declare the total $18.4 million on its balance sheet for 2003, while continuing to seek offset from Met.

Western United's 2003 net gain from operations, prior to non-reoccurring adjustments, was almost $18.2 million. After making the adjustment for the tax shelter and capital gains and losses the company experienced a net loss for 2003. It is only the second time the company has shown a loss in recent history. Despite the 2003 loss, Western United has more than 40,000 policyholders in 16 states throughout the United States, assets of more than $1.7 billion, and included in that is a substantial cash reserve of more than $200 million.

“Though our true loss on the shelter is only $6.2 million, we felt the responsible action was to show the entire loss while we work with the creditors of Metropolitan for repayment of all money it owes to us,” said Whitney. Metropolitan owes Western over $70 million in unpaid loans secured by real property owned by Met. In addition, Western believes it has substantial claims against Met, which are likely to exceed any amount Western may owe Met. Again, once claims have been fully liquidated and offset, Western will have a substantial net claim against the corporate parent.

About Western United Life Assurance

Western United Life Assurance Company (Western United) has been offering quality products and services since 1963. Western United's diverse array of annuity products is designed to meet a variety of needs; be it an immediate payout of income or an accumulation of unique products and unmatched customer service.