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MARCH 03, 2010 01:30 PM (EST)

A.M. Best Places Ratings of Reserve National Insurance Company Under Review With Developing Implications


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Steven Faulks
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Thomas Rosendale
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Jim Peavy
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FOR IMMEDIATE RELEASE

OLDWICK, N.J. - MARCH 03, 2010 01:30 PM (EST)
A.M. Best Co. has placed the financial strength rating of A- (Excellent) and issuer credit rating of "a-" of Reserve National Insurance Company (Reserve National) (Oklahoma City, OK) under review with developing implications. Reserve National is a wholly owned life/health insurance subsidiary of Unitrin, Inc. (Unitrin) [NYSE: UTR]. The ratings of the other life/health insurance subsidiaries of Unitrin are unchanged.

The rating actions are in response to Unitrin's recent announcement that it has reached an agreement in principle to sell Reserve National to Physicians Mutual Insurance Company. The transaction is subject to negotiations and execution of a definitive agreement between Unitrin and Physicians Mutual Insurance Company, completion of due diligence and regulatory approval. At this time, the transaction is expected to be completed in second quarter 2010.

The ratings of Reserve National will remain under review pending the successful completion of the acquisition and A.M. Best's discussions with the management of Physicians Mutual Insurance Company.

For Best's Credit Ratings, an overview of the rating process and rating methodologies, please visit Best's Ratings & Analysis.

The principal methodologies used in determining these ratings, including any additional methodologies and factors that may have been considered, can be found at Best's Credit 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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