A.M. Best Affirms Ratings of National Security and Its Affiliates

  
    
  
  
    
      A.M. Best Co. has affirmed the financial strength rating (FSR) of 
      B++ (Good) and issuer credit ratings (ICR) of “bbb” 
      of National Security Group (National Security) and its member, National 
      Security Fire and Casualty Company. Additionally, A.M. Best has 
      affirmed the FSR of B+ (Good) and ICR of “bbb-” 
      of National Security’s wholly owned 
      subsidiary, Omega One Insurance Company, Inc (Omega One). 
      Concurrently, A.M. Best has affirmed the FSR of B (Fair) and ICR of “bb” 
      of the life/health company, National Security Insurance Company. 
      A.M. Best also has affirmed the ICR of “bb” 
      of the parent company of the affiliates, The National Security 
      Group, Inc. (NASDAQ: NSEC). The outlook for all ratings is stable. 
      All of the insurance companies are domiciled in Elba, AL.
    
    
      The ratings of National Security reflect its adequate risk-adjusted 
      capitalization, improved operating trends and well-established niche 
      position as a provider of dwelling/fire coverage. 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 substantial hurricane exposure as well as competitive 
      pressures.
    
    
      The ratings of Omega One acknowledge its low underwriting leverage and 
      favorable operating performance. Partially offsetting these positive 
      rating factors is the company’s limited 
      business profile that leaves it susceptible to severe weather-related 
      losses.
    
    
      The ratings of National Security Insurance Company reflect the recent 
      decline in its capital and surplus, fluctuating operating results and 
      limited geographic profile. Partially offsetting these rating factors 
      are the company’s favorable 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 global full-service credit 
      rating organization dedicated to serving the financial and health care 
      service industries, including insurance companies, banks, hospitals and 
      health care system providers. For more information, visit www.ambest.com.