AM Best


A.M. Best Upgrades Ratings of Fremont Insurance and Fremont Michigan;
Revises Outlook to Stable


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Analyst(s)

Joel Silverthorn

(908) 439-2200, ext. 5120

joel.silverthorn@ambest.com

Gary Davis

(908) 439-2200, ext. 5665

gary.davis@ambest.com


Public Relations

Jim Peavy

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Rachelle Morrow

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FOR IMMEDIATE RELEASE

OLDWICK, N.J. - DECEMBER 19, 2006 12:00 AM (EST)
A.M. Best Co. upgraded the financial strength rating to B++ (Very Good) from B+ (Very Good) and the issuer credit rating (ICR) to "bbb" from "bbb-"of Fremont Insurance Company (Fremont). A.M. Best has also upgraded the ICR to "bb" from "bb-" for Fremont's holding company, Fremont Michigan InsuraCorp, Inc. [OTCBB: FMMH]. Both companies are domiciled in Fremont, MI. The outlook for the ratings has been revised to stable from positive.

The ratings reflect Fremont's well-established market presence as a writer of homeowners insurance in Michigan, strong capitalization, improved overall operating results, tightened underwriting guidelines and expansion into less catastrophe-prone areas of Michigan.

These favorable rating factors are offset by Fremont's historically flat performance measures, somewhat elevated net premium leverage and the risks inherent in the company's geographic concentration in Michigan, which may subject the company to weather-related loss exposure and potential adverse legal and regulatory conditions.

Fremont writes commercial and personal auto, homeowners, mobile homeowners, farm owners, commercial multi-peril and inland marine coverages exclusively in Michigan. In recent years, the company added boiler and machinery coverage, personal, farm and commercial umbrella, as well as a yacht program to its product offerings.

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

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