Majestic Insurance Company Rates Positive Outlook, Says A.M. Best

Business Wire, June 5, 2006

SAN FRANCISCO -- A.M. Best Company, the most authoritative source of insurance company ratings and information, has improved its outlook on Majestic Insurance Company from stable to positive.

A.M. Best affirmed the secure financial strength rating of B (Very Good) VI. According to AM Best, the rating reflects Majestic's profitable operating results over the last five-year period, improving capitalization and the company's expertise within its specialty workers' compensation insurance product offering.

A positive outlook indicates that Majestic's financial and market trends are favorable, relative to its current rating level and if continued, Majestic has a good possibility of having its rating upgraded.

"We are pleased with A.M. Best's positive outlook," said John Sullivan, Majestic's President and CEO. "AM Best recognized Majestic's enhanced risk profile, its financial strength and its ability to grow and succeed in the dynamic California workers' compensation marketplace. Our results reflect a sustained strong demand for Majestic's specialty products and services. Our strategy is simple. We aim not to be the biggest, but the best. Our employees and partners are effectively engaged to enhance our service offerings and are invested in the success of the company for the long-term."

For more information about Majestic Insurance Company visit the company's web site at www.majesticinsurance.com.

Majestic Insurance Company is a wholly-owned subsidiary of Embarcadero Insurance Holdings, Inc. Majestic writes workers' compensation insurance under various state acts and U.S. Longshore and Harbor Workers' Compensation Act. Majestic is licensed in fifteen states and operates primarily in California, Arizona, Alaska, Nevada, Oregon and Washington.