A.M. Best Withdraws Ratings of Farmers Home Mutual Insurance Company Due to Affiliate Merger

Business Wire, March 19, 2008

OLDWICK, N.J. -- A.M. Best Co. has withdrawn the financial strength rating (FSR) of A- (Excellent) and issuer credit rating (ICR) of "a-" and assigned a category NR-5 (Not Formally Followed) to Farmers Home Mutual Insurance Company (FHM) (Edina, MN).

These rating actions follow the announcement that FHM has merged with its affiliated company, Western National Mutual Insurance Company (WNM), a member of the Western National Insurance Group (WNG) (both of Edina, MN), as of December 31, 2007. As part of the merger, WNM assumed all of the liabilities and obligations under and according to the terms of the policies issued by FHM. As a result, policyholders of FHM will now be insured by WNM.

WNG's FSR of A- (Excellent) and ICR of "a-" are unchanged by this transaction. The outlook for both ratings is positive.

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.