A.M. Best Revises Outlook of South Carolina Farm Bureau Group to Stable

Business Wire, June 6, 2008

OLDWICK, N.J. -- A.M. Best Co. has revised the outlook to stable from negative and affirmed the financial strength rating of A- (Excellent) and issuer credit ratings (ICR) of "a-" of South Carolina Farm Bureau Group (SCFB) and its members, South Carolina Farm Bureau Mutual Insurance Company and Palmetto Casualty Insurance Company. All companies are domiciled in Columbia SC.

The ratings reflect SCFB's strong risk-adjusted capitalization, comprehensive reinsurance program, consistent investment income and strong local market presence. The ratings also recognize SCFB's sponsorship by the South Carolina Farm Bureau Federation, which facilitates marketing efforts and enhances customer loyalty and affinity. The stable outlook is based on reduced catastrophe exposure and improved stress tested risk-adjusted capitalization.

SCFB's negative rating attributes include its geographic concentration, exposure to catastrophic storm losses and dependence on reinsurance. In addition, as a result of SCFB's reduced net premium and high reinsurance costs, its expense ratio has become elevated.

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.