SUMMARY UNAUDITED PRO FORMA FINANCIAL DATA

      The following summary unaudited pro forma condensed combined financial information (“pro forma financial information”) is designed to provide investors with information about the continuing impact of United National Group’s acquisition of Penn-America and Penn Independent by showing how it might have affected historical financial statements if the transactions had been completed at an earlier time. The following pro forma financial information was prepared based on the historical financial results reported by United National Group and Penn-America in their filings with the SEC and by the historical financial results of Penn Independent. The following should be read in connection with the section entitled “Unaudited Pro Forma Condensed Combined Financial Information” on page 218 and the financial statements and other information included in or incorporated by reference in this joint proxy statement/ prospectus.

			Pro Forma Combined
			Year Ended				Nine Months Ended
			December 31, 2003				September 30, 2004
			(in thousands, except per share amounts)
Statement of Operations Data:
Gross premiums written			$	877,822			$	509,507
Net premiums written			$	376,831			$	373,734
Net premiums earned			$	313,209			$	300,462
Total revenues			$	396,887			$	358,010
Income before taxes			$	57,056			$	36,835
Net income before extraordinary gain			$	47,604			$	34,293
Net income			$	94,028			$	35,488
Net income per share before extraordinary gain:
	Basic		$	1.32			$	0.94
	Diluted		$	1.29			$	0.92
Net income per share:
	Basic		$	2.60			$	0.97
	Diluted		$	2.56			$	0.95

						Pro Forma as of
						September 30, 2004
Balance Sheet Data:
Total investments and cash and cash equivalents						$	1,201,112
Reinsurance receivables, net of allowance						$	1,700,486
Total assets						$	3,296,836
Unpaid losses and loss adjustment expenses						$	2,191,492
Total debt, including capital lease obligations						$	141,813
Total shareholders’ equity						$	558,658
Book value per share						$	15.27