Press Release - JUNE 12, 2006

A.M. Best Assigns Rating to Amica Property and Casualty; Affirms Ratings of Amica Mutual Group and Amica Life


CONTACTS:
 
Analyst(s)
Joel Silverthorn—P/C
(908) 439-2200, ext. 5120
joel.silverthorn@ambest.com

Ralph Berardino—L/H
(908) 439-2200, ext. 5301
ralph.berardino@ambest.com

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

Rachelle Striegel
(908) 439-2200, ext. 5378
rachelle.striegel@ambest.com

FOR IMMEDIATE RELEASE

OLDWICK, N.J. - JUNE 12, 2006
A.M. Best Co. has assigned a financial strength rating (FSR) of A++ (Superior) to the Amica Property & Casualty Insurance Company, which is a new member of the Amica Mutual Group (Amica).

Concurrently, A.M. Best has affirmed the FSR of A++ (Superior) of Amica. This rating also applies to the lead company, Amica Mutual Insurance Company, and its other affiliate, Amica Lloyd's of Texas (Sugar Land, TX). Additionally, A.M. Best has affirmed the FSR of A+ (Superior) of Amica Life Insurance Company (Amica Life). All companies are located in Lincoln, RI, except where specified. The outlook for all ratings is stable.

The assignment of the rating to Amica Property & Casualty reflects its role as a personal passenger automobile lines writer in New Jersey, as well as the implicit and explicit support it receives from its parent, Amica. The affirmation of the group's rating reflects its outstanding capitalization, solid operating performance and well-established market position as one of the 60 largest property/casualty insurers in the United States.

These strengths are derived from management's improved underwriting fundamentals, geographic diversification strategy and low cost distribution channels. Amica's operating performance, although favorable, is reduced to marginal levels by the return of capital to its policyholders in the form of dividends. This annual dividend, however, is an integral part of Amica's rate structure, which enables it to maintain high retention levels. Furthermore, the group maintains modest underwriting leverage and follows conservative loss reserving practices.

Amica's strong operating fundamentals and multi-line synergies carry over into its life operation, which benefits from the group's capital strength, distribution network and growing customer base. Amica Life's rating recognizes its strong stand-alone risk-adjusted capitalization, profitable statutory operating results and continued growth in life insurance premiums.

Over the near term, A.M. Best expects Amica to sustain its strong capitalization and favorable profitability levels through its adherence to conservative operating fundamentals and exceptional customer service standards.

For Best's Ratings, an overview of the rating process and rating methodologies, please visit Best's Rating Center.

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

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