A.M. Best Revises Outlook to Stable for The Bar Plan Group

Business Wire, April 11, 2008

OLDWICK, N.J. -- A.M. Best Co. has affirmed the financial strength rating of A- (Excellent) and issuer credit rating of "a-" of The Bar Plan Group (The Bar Plan) and its member, The Bar Plan Mutual Insurance Company (St. Louis, MO). The outlook for both ratings has been revised to stable from negative.

These ratings reflect The Bar Plan's excellent risk-adjusted capitalization and leadership position in providing lawyer professional liability insurance (LPL), primarily to sole practitioners and small law firms. The group has extensive knowledge of the LPL markets in which it operates and insures approximately 85% of the eligible insureds in its core state of Missouri. The ratings also recognize The Bar Plan's stringent underwriting standards, prudent investment strategies and high policyholder retention levels.

The revised outlook stems from The Bar Plan's improved prospects following excellent operating results in 2007. The improvement, which began in the latter half of 2006, is attributable to a series of underwriting and claims initiatives that management implemented to address deteriorating operating results. These initiatives included base rate increases, debit and credit adjustments, increased non-renewal activity, additional underwriting audits and the issuance of a $5 million surplus note in third quarter 2006.

Partially offsetting these positive rating factors are the group's business concentration risks, which increase its susceptibility to adverse economic, regulatory and legislative conditions. Furthermore, the group experienced a period of negative operating returns in 2005 and 2006 as a result of unfavorable claim severity trends.

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 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. For more information, visit www.ambest.com.