AM Best


A.M. Best Maintains Under Review Status on Ratings of Meadowbrook Insurance Group, Inc. and Its Subsidiaries


CONTACTS:


Kenneth Monahan

Financial Analyst

(908) 439-2200, ext. 5342

kenneth.monahan@ambest.com

Joseph Roethel

Assistant Vice President

(908) 439-2200, ext. 5630

joseph.roethel@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. - MARCH 01, 2013 12:00 AM (EST)
A.M. Best Co. has maintained the under review with negative implications status on the financial strength rating (FSR) of A- (Excellent) and issuer credit ratings (ICR) of “a-” of the subsidiaries of Meadowbrook Insurance Group, Inc. (MIGI) (Southfield, MI) [NYSE: MIG], which operate under an intercompany reinsurance pooling agreement. A.M. Best also has maintained the under review with negative implications status on the ICR of “bbb-” of MIGI. (See below for a detailed listing of the companies and ratings.)

Maintenance of the under review status is in follow up to the rating actions taken by A.M. Best on October 19, 2012 and is in response to some of the remedial actions taken by MIGI since its third quarter earnings announcement and reserve charge. Among the actions taken by management since that time include capital enhancements through the monetization of investments, quota share reinsurance (surplus relief) and the termination of certain underperforming books of business. Other factors A.M. Best has considered since that time include management’s guidance in 2013 and its expectation to restore profitability and capital via retained earnings.



The ratings will remain under review as A.M. Best continues to evaluate MIGI’s corrective actions.

The FSR of A- (Excellent) and ICRs of “a-” remain under review with negative implications for the following Meadowbrook Insurance Group, Inc. subsidiaries:

· Star Insurance Company

· Century Surety Company

· Savers Property and Casualty Insurance Company

· ProCentury Insurance Company

· Williamsburg National Insurance Company

· Ameritrust Insurance Corporation


The methodology used in determining these ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best’s rating process and contains the different rating criteria employed in the rating process. Best’s Credit Rating Methodology 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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