John W. Hayden, Midland's president and chief executive officer, said, "The board's decision recognizes our strong growth record as well as the significant long-term opportunities we believe lie ahead."

He added that the company board is committed to actions that can contribute to the total return of our shareholders.

Mr. Hayden mentioned that since early 1998, when the company split the stock three-for-one, the average daily trading volume in the stock has risen five-fold.

The company believes, he said, that "this split will further enhance liquidity and make our common stock more attractive to a broader range of investors."

Mr. Hayden noted that over the past five years, the compound annual total return on Midland's stock has been 26.1 percent, compared to 6.1 percent for the Standard & Poor's 500 Index. He added that Midland's total return also has exceeded the Index for the ten, fifteen and twenty-year periods ended May 2002.

American Modern Insurance Group, Midland's wholly owned insurance subsidiary, provides insurance for such products and services as manufactured housing, recreational vehicle, watercraft, motorcycle, snowmobile, specialty auto, dwelling fire, credit life and physical damage commercial lines.

"Our specialty focus, diverse product line and multiple distribution channels create opportunities," Hayden said. "For the ten years ending Dec, 31, 2001, revenue grew at a compound annual rate of 12.5 percent, book value grew at an 11.4 percent rate and net operating earnings per share grew at a 12.7 percent annual compound rate.

In first-quarter 2002, Midland reporting an 8.5 percent increase in net operating earnings (net income excluding capital gains/losses and the effects of any changes in accounting principles) to a record $1.07 per share (pre-split), Mr. Hayden said. That compared to 99 cents on the same basis in the first quarter of 2001, Mr. Hayden said.

"We see another record quarter developing," said Mr. Hayden regarding anticipated second quarter operating results.

He noted, however, that in the late spring months the company is not immune to the high winds and heavy rains experienced throughout the Midwest.

The CEO said while it is too early to know for sure, "management believes we are on track to achieve operating earnings per share of between 70 cents and 80 cents (pre-split) compared with last year's 51 cents (pre-split)."

According to Mr. Hayden, the company's previous second-quarter record was 61 cents (pre-split) in 2000.