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A.M. Best Revises Outlook of Issuer Credit Ratings of Fremont Insurance Company and Fremont Michigan InsuraCorp


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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

(908) 439-2200, ext. 5378

rachelle.morrow@ambest.com


FOR IMMEDIATE RELEASE

OLDWICK, N.J. - JANUARY 30, 2008 12:00 AM (EST)
A.M. Best Co. has affirmed the issuer credit rating (ICR) of "bbb" and the financial strength rating (FSR) of B++ (Good) of Fremont Insurance Company (Fremont) [PNK: FMMH]. The outlook for the ICR has been revised to positive from stable, while the outlook for the FSR remains stable. A.M. Best also has affirmed the ICR of "bb" of Fremont's holding company, Fremont Michigan InsuraCorp, Inc, and revised the outlook to positive from stable. Both companies are domiciled in Fremont, MI.

The ratings reflect Fremont's well-established market presence as a writer of personal lines 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 somewhat elevated net premium leverage and the risks inherent in the company's geographic concentration in Michigan, which may subject it to weather-related loss exposure, potentially adverse legal and regulatory conditions, as well as competitive market pressures.

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

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.

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