MRM Announces Legion Companies To Enter Rehabilitation

Hamilton, Bermuda: 1 April 2002 - Mutual Risk Management, Ltd. (NYSE:MM) has announced that two of its U.S. insurance companies, Legion Insurance Company and Villanova Insurance Company ("the Legion Companies"), have been placed into voluntary rehabilitation as a result of an order issued by the Commonwealth Court of Pennsylvania. The order of rehabilitation, which will be effective April 1, 2002, was filed with the consent of the boards of directors of the Legion Companies.

Beginning on April 1, 2002, the Legion Companies will operate in run-off under the control of the Insurance Commissioner of the Commonwealth of Pennsylvania as Rehabilitator. No new policies will be bound and the Legion Companies will begin a process to non-renew their in-force policies in accordance with applicable state regulations.

Mutual Risk is evaluating the financial accounting implications of this development and continuing to evaluate strategic alternatives with its financial advisor, Greenhill & Co., LLC.

Mutual Risk also announced today the appointment of Mr. Angus Ayliffe as Chief Financial Officer in place of Mr. James Kelly who was acting in that capacity on an interim basis. Mr. Ayliffe was previously Mutual Risk's Controller.

Mutual Risk Management Ltd. provides risk management services to clients in the United States, Canada and Europe seeking alternatives to traditional commercial insurance for certain of their risk exposures, as well as financial services to individuals and other companies. Mutual Risk Management Ltd. (MM) Common Shares are listed on the New York and Bermuda stock exchanges.

This press release contains forward-looking statements within the meaning of the U.S. federal securities laws. We intend these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in these laws. These statements are not guarantees of performance. Actual results may differ materially from those projected in such forward-looking statements and therefore you should not place undue reliance on them. Actual results could be affected by actions of regulators and customer and lender reactions to the rehabilitation orders. Other important factors that could cause actual results to differ materially from those in such forward-looking statements are set forth in Mutual Risk's most recent report on Form 10-K and Mutual Risk's other documents on file with the Securities and Exchange Commission. Mutual Risk undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise.