A.M. Best Affirms Ratings of Meadowbrook Insurance Group, Inc. and Its Subsidiaries

OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best Co. has affirmed the financial strength rating (FSR) of A- (Excellent) and issuer credit ratings (ICR) of “a-” of Meadowbrook Insurance Group (Meadowbrook) and its pooled members. A.M. Best also has affirmed the ICR of “bbb-“ of the parent holding company, Meadowbrook Insurance Group, Inc. (MIGI) (Southfield, MI) (NYSE: MIG). The outlook for all ratings is stable. (See below for a detailed listing of the companies and ratings.)

These ratings reflect Meadowbrook’s sustained operating profitability, despite investment and catastrophe losses in 2008 and continued soft market conditions, its supportive capitalization and management’s expertise in both the specialty program business and alternative risk market. A.M. Best also recognizes Meadowbrook’s ability to offer full service excess and surplus lines capabilities following MIGI’s July 2008 merger with ProCentury Corporation (ProCentury).

MIGI’s financial leverage (total debt/total capital) was elevated to 23.1% at March 31, 2009 as a result of the aforementioned transaction with ProCentury but remains within A.M. Best’s standards for the current ratings, and interest coverage remains solid.

As of January 1, 2009, the two reinsurance pooling agreements that were in place through December 31, 2008—the first consisting of the existing Meadowbrook companies and the other comprised of the ProCentury companies—were terminated on a cut-off, and the six insurance affiliates became parties to one collective intercompany reinsurance pooling agreement. Accordingly, the rating of the former, separate Century Insurance Group has been withdrawn.

The FSR of A- (Excellent) and ICRs of “a-” have been affirmed for Meadowbrook Insurance Group and its following members:

• Star Insurance Company
• Century Surety Company
• Savers Property and Casualty Insurance Company
• ProCentury Insurance Company
• Williamsburg National Insurance Company
• Ameritrust Insurance Corporation

For Best’s Credit Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings.

The principal methodologies used in determining these ratings, including any additional methodologies and factors that may have been considered, can be found at www.ambest.com/ratings/methodology.

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.

A.M. Best Co.
Analysts
Richelle Bryan, 908-439-2200, ext. 5344
richelle.bryan@ambest.com
or
Joseph Roethel, 908-439-2200, ext. 5630
joseph.roethel@ambest.com
or
Public Relations
Jim Peavy, 908-439-2200, ext. 5644
james.peavy@ambest.com
or
Rachelle Morrow, 908-439-2200, ext. 5378
rachelle.morrow@ambest.com