Press Release - NOVEMBER 19, 2010

A.M. Best Places the Ratings of AAA Mid-Atlantic Insurance Group and Its Members Under Review With Positive Implications


CONTACTS:
 Joel Silverthorn
Senior Financial Analyst
(908) 439-2200, ext. 5120
joel.silverthorn@ambest.com

Jeffrey Mango, CPA
Assistant Vice President
(908) 439-2200, ext. 5204
jeffrey.mango@ambest.com
Rachelle Morrow
Senior Manager, Public Relations
(908) 439-2200, ext. 5378
rachelle.morrow@ambest.com

Jim Peavy
Assistant Vice President, Public Relations
(908) 439-2200, ext. 5644
james.peavy@ambest.com

FOR IMMEDIATE RELEASE

OLDWICK, N.J. - NOVEMBER 19, 2010
A.M. Best Co. has placed under review with positive implications the financial strength rating (FSR) of B++ (Good) and issuer credit rating (ICR) of "bbb" of AAA Mid-Atlantic Insurance Group and its members.

This action follows the announcement on November 16, 2010 of the signing of a definitive agreement on October 15, 2010 between AAA Mid-Atlantic, Inc. and California State Automobile Association Inter-Insurance Bureau (CSAA) (Walnut Creek, CA). CSAA has an FSR of A+ (Superior) and an ICR of "aa-"; both with a stable outlook.

The agreement stipulates that CSAA will purchase Keystone Insurance Company and its wholly owned subsidiaries, AAA Mid-Atlantic Insurance Company and AAA Mid-Atlantic Insurance Company of New Jersey from AAA Mid-Atlantic, Inc. These companies constitute the AAA Mid-Atlantic Insurance Group.

The under review status reflects the strength of CSAA and its ability to support the members of the AAA Mid-Atlantic Group going forward. In conjunction with the purchase of these companies, CSAA also has acquired the producer agreements with Auto Club Partners, Inc., which allows CSAA to transact business in the prior territories marketed by the AAA Mid-Atlantic Group. The under review status will remain until the transaction closes, as A.M. Best continues discussions with AAA Mid-Atlantic Group and CSAA's managements regarding their plans going forward.

The principal methodology used in determining these ratings is Best's Credit Rating Methodology - Global Life and Non-Life Insurance Edition, which provides a comprehensive explanation of A.M. Best's rating process and highlights the different rating criteria employed. Additional key criteria utilized include: "Risk Management and the Rating Process for Insurance Companies"; "Understanding BCAR for Property/Casualty Insurers"; and "Rating Members of Insurance Groups." Methodologies can be found at www.ambest.com/ratings/methodology.

Founded in 1899, A.M. Best Company is the world's oldest and most authoritative insurance rating and information source.

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