A.M. Best Upgrades Ratings of Southern Pioneer Property & Casualty Insurance Company

Business Wire, March 28, 2008

OLDWICK, N.J. -- A.M. Best Co. has upgraded the financial strength rating (FSR) to B (Good) from B (Good) and issuer credit rating (ICR) to "bbb " from "bbb-" of Southern Pioneer Property & Casualty Insurance Company (Southern Pioneer) (Jonesboro, AR). The outlook for both ratings is stable.

These rating actions reflect Southern Pioneer's solid risk-adjusted capitalization, historic underwriting and operating profitability and conservative liquidity and leverage measures. The ratings also reflect the company's niche expertise in its chosen markets (garage liability, low value homeowners and collateral protection) utilizing multiple distribution sources and improved technology infrastructure, which should enable Southern Pioneer to more efficiently service its existing clients.

Somewhat offsetting these positive rating factors are Southern Pioneer's concentrated product offering and limited geographic footprint and the execution risk associated with its planned expansion into new states and lines of business. Despite these offsetting factors, the outlook is reflective of the expectation of sustained profitability, continued surplus growth and adherence to a level of risk-adjusted capitalization that is supportive of its current ratings.

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.