A.M. Best Upgrades Ratings of PMSLIC and Revises Outlook to Stable; Affirms and Assigns Ratings to NORCAL Group

Business Wire, April 19, 2007

OLDWICK, N.J. -- A.M. Best Co. has upgraded the financial strength rating (FSR) to A (Excellent) from A- (Excellent) and the issuer credit rating (ICR) to "a" from "a-" of PMSLIC Insurance Company (PMSLIC) (Mechanicsburg, PA). The outlook for the FSR and ICR has been revised to stable from positive. A.M. Best has also affirmed the FSR of A (Excellent) of the NORCAL Group and its lead member, NORCAL Mutual Insurance Company (NORCAL) (San Francisco, CA). Additionally, A.M. Best has affirmed the ICR of "a" of NORCAL and assigned an ICR of "a" to NORCAL Group. The outlook for these ratings is stable.

These rating actions reflect the implementation of an intercompany pooling arrangement between NORCAL and PMSLIC, retroactive to January 1, 2007. Various rating actions were taken on these companies on March 16, 2007 including the assignment of a positive outlook to PMSLIC's ratings, which was contingent upon the successful implementation and regulatory approval of the aforementioned pooling arrangement.

For Best's Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings.> Founded in 1899, A.M. Best Company is a full-service credit rating organization dedicated to serving the financial services industries, including the banking and insurance sectors. For more information, visit www.ambest.com.