Press Release - FEBRUARY 12, 2009

A.M. Best Comments on The Farmers' Mutual Fire Insurance Company of Dug Hill's Planned Merger Transaction


CONTACTS:
 
Analyst(s)
Adrienne Tortoriello
(908) 439-2200, ext. 5088
adrienne.tortoriello@ambest.com

Rick Decker
(908) 439-2200, ext. 5423
rick.decker@ambest.com

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

Rachelle Morrow
(908) 439-2200, ext. 5378
rachelle.morrow@ambest.com

FOR IMMEDIATE RELEASE

OLDWICK, N.J. - FEBRUARY 12, 2009
A.M. Best Co. has commented that the financial strength rating (FSR) of B- (Fair) and issuer credit rating (ICR) of "bb-" of The Farmers' Mutual Fire Insurance Company of Dug Hill (Dug Hill) (Manchester, MD) are unchanged at this time. The outlook for both ratings is stable.

This commentary follows the recent announcement that Dug Hill has entered into a definitive merger agreement with Windsor-Mount Joy Mutual Insurance Company (Windsor-Mount Joy) (Ephrata, PA). Subject to the terms of the agreement, Dug Hill shall merge into Windsor-Mount Joy with Windsor-Mount Joy being the surviving company.

This transaction is subject to regulatory and policyholder approval and is expected to close by second quarter 2009. Upon closing, A. M. Best anticipates the ratings of Dug Hill to be withdrawn, assigning a category NR-5 (Not Formally Followed) to the FSR and an "nr" to the ICR.

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

The principal methodologies used in determining these ratings, including any additional methodologies and factors, which may have been considered, can be found at

Best's Rating 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.

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