AM Best


A.M. Best Comments on Columbia Insurance Group's Announced Acquisition


CONTACTS:

Analyst(s)

Maurice Thomas

(908) 439-2200, ext. 5794

maurice.thomas@ambest.com

Jeffrey Mango, CPA

(908) 439-2200, ext. 5204

jeffrey.mango@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. - DECEMBER 28, 2007 12:00 AM (EST)
A.M. Best Co. commented on the announcement that Columbia Mutual Insurance Company, a member of the Columbia Insurance Group (Columbia Group), has entered into an definitive agreement to acquire Georgia Casualty & Surety Company and Association Casualty Insurance Company, currently owned by Atlantic American Corporation (NASDAQ: AAME).

The transaction is expected to close in the first quarter of 2008 and it is anticipated that the ratings of Columbia Group will not change. However, A.M. Best will continue to analyze the implications for Columbia Group as it relates to the execution risk associated with the strategic integration of the acquired entities, their historical variable operating performance and the overall impact on the risk profile of Columbia Group. As a result, following the close of the transaction, A.M. Best will reevaluate whether the current positive outlook of Columbia Group will be affected.

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.

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