A.M. Best Affirms Ratings of National Security Group, Omega One Insurance and National Security Insurance

  
    
  
  
    
      A.M. Best Co. has affirmed the financial strength rating (FSR) of 
      B++ (Good) and the issuer credit rating (ICR) of “bbb” 
      of National Security Fire and Casualty Company and the FSR of B+ 
      (Good) and ICR of “bbb-” 
      of its wholly-owned subsidiary, Omega One Insurance Company, Inc. 
      (Omega One), both members of the National 
      Security Group (National Security). Concurrently, A.M. Best has 
      affirmed the FSR of B (Fair) and has assigned an ICR of “bb” 
      to the life/health company, National Security Insurance Company. 
      A.M. Best has also affirmed the ICR of “bb” 
      of The National Security Group, Inc. [NASDAQ: 
      NSEC]. The outlook for all ratings is stable. 
      All companies are domiciled in Elba, AL.
    
    
      The ratings of National Security reflect its adequate risk-adjusted 
      capitalization and well-established niche position as a provider of 
      dwelling/fire coverage in the Southeast. However, somewhat offsetting 
      these positive rating factors is the group’s 
      geographic and product concentration in the Gulf Coast states, which 
      subjects National Security’s earnings and 
      surplus to weather-related catastrophes.
    
    
      The ratings of Omega One acknowledge its low underwriting leverage and 
      favorable operating performance. Partially offsetting these positive 
      rating factors is the company’s geographic 
      concentration that leaves it susceptible to severe weather-related 
      losses, as well as competitive and regulatory pressures.
    
    
      The ratings of National Security Insurance Company recognize the recent 
      decline in its capital and surplus, fluctuating operating results and 
      limited geographic profile. Partially offsetting these positive 
      attributes are the company’s adequate level 
      of risk-adjusted capitalization, recent—albeit 
      modest—growth of new premium and improved 
      level of persistency on its ordinary life line.
    
    
      For Best’s Ratings, an overview of the rating 
      process and rating methodologies, please visit www.ambest.com/ratings.
    
    
      Founded in 1899, A.M. Best Company is a full-service credit rating 
      organization dedicated to serving the financial services industries, 
      including the banking and insurance sectors. For more information, visit www.ambest.com.