Star Casualty Insurance Company Earns an Initial A.M. Best Rating of B++

A.M. Best Company, the leading independent evaluator of the nation's insurance industry, has awarded Star Casualty Insurance Company of Coral Gables an initial rating of B . In addition, Best assigned a "stable" outlook for 2007. Star Casualty is a domestic property and casualty company that writes private passenger automobile insurance across Florida.

Star's President, Paul G. Gabe, Jr. said, "This B rating is as good or better than one could expect for an initial rating and I believe it's better than a majority of our comparable competitors. A.M. Best's opinion is a testament to the execution of our disciplined business strategy."

According to A.M. Best, "The rating reflects Star Casualty Insurance Company's strong risk-adjusted capitalization, favorable operating performance, conservative investment philosophy and management's knowledge of the non-standard automobile market. Additionally, the rating reflects the company's favorable loss reserve development. Positive rating attributes include the company's disciplined underwriting approach and strong local market knowledge. As a result, the company improved its surplus, driven by increased underwriting profits, strong fee income and increased investment income."

Best's Ratings are recognized worldwide as the benchmark for assessing insurers' financial strength. A rating of B is the highest rating in the "Very Good" category and is in the "Secure" range.

Besides highlighting Star Casualty's strong financial health, A.M. Best also singled out the strength of the company's senior management team led by Gabe, who has enjoyed a successful 28-year career in the insurance industry. Prior to joining Star Casualty, he served as a Senior Vice-President for Hartford Financial Services Group, where he had countrywide responsibility for the profitability and growth of the company's personal lines products.

With 2006 coming to a close, Star Casualty is projected to have an excess of $18 million dollars in net written premium and 13,000 policies in force. The company has achieved steady organic growth throughout all of 2006.

Gabe said, "Star Casualty's financial strength is attributable to our decision not to follow inexplicable pricing in a soft market. The industry as a whole has been implementing rate decreases as well as considerably increasing the acquisition cost of new business. During such a cycle, Star's strategy will be to emphasize profit, and be opportunistic in regard to premium growth. This type of discipline has and will enable us to deliver excellent financial results over the long term."

"Star's strong financial picture, validated by the initial Best's rating, fulfills Star's promise to be financially strong and provide peace of mind," said Vice-President of Marketing and Product Management Don Moser, who has 19 years of industry experience with companies like Progressive and The Hartford.

"I thank our agency partners for helping us achieve this wonderful recognition and for giving us an opportunity to form long lasting relationships with them," Moser said. "We look forward to continued expansion throughout Florida and to entering another state in 2007."

Independent agent Deborah Echeverria of State Auto Tags & Insurance in Sunrise, Florida said, "It's no surprise to me that A.M. Best has given Star Insurance such high marks. Every time we've interacted with them they have demonstrated their true dedication to being our partner. We are thrilled to be part of their team."

About Star Casualty Insurance Company:

Star Casualty Insurance is a privately owned domestic property & casualty insurance company based in Coral Gables, Florida. The company, founded in 1987, writes private passenger automobile liability and physical damage coverage throughout the State of Florida. Star Casualty, which markets its products exclusively through independent agency partners, has a Best's rating of B . For more information log on to www.starcasualty.com .

About A.M. Best:

A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. For more log on to www.ambest.com .

Contacts: Todd Templin or Michelle Friedman Boardroom Communications 954-370-8999 Paul G. Gabe, Jr. Star Casualty 305-446-6895