Kentucky National Insurance Company Earns Financial Stability Rating(R) of A, Exceptional

Market Wire, October, 2007

Kentucky National Insurance Company has earned a Financial Stability Rating® (FSR) of A, Exceptional, from Demotech, Inc. This level of FSR is assigned to insurers who possess exceptional financial stability related to maintaining positive surplus as regards policyholders, liquidity of invested assets, an acceptable level of financial leverage, reasonable loss and loss adjustment expense reserves and realistic pricing.

FSRs summarize Demotech's opinion of the financial stability of an insurer regardless of general economic conditions or the phase of the underwriting cycle. FSRs utilize statutory financial data based on insurance accounting principles prescribed or permitted by the National Association of Insurance Commissioners (NAIC). Since 1989, FSRs of A or better have been accepted by the major participants in the secondary mortgage marketplace, including Fannie Mae, Freddie Mac and HUD.

About Kentucky National Insurance Company, RRG

Kentucky National Insurance Company has been writing policies in the commonwealth for nearly 35 years. During that time, its commitment has remained the same: to provide the highest level of assurance of safety and security to policyholders throughout Kentucky.

Kentucky National Insurance Company was first chartered in 1973 and began issuing policies that same year. In 2007 Kentucky National Insurance became part of the Forcht Group of Kentucky family of companies. Forcht Group of Kentucky was founded by businessman and entrepreneur Terry Forcht.

Kentucky National Insurance offers a wealth of insurance coverage options, including auto, home, and boat. Kentucky National Insurance policies are sold through numerous independent agents covering the commonwealth from Ashland to Paducah.

Kentucky National Insurance Company's national headquarters is in Lexington Kentucky. Visit www.kynatins.com for more information.

About Demotech, Inc.

Since 1985, Demotech, Inc., a Columbus, Ohio based financial analysis and actuarial services firm, has provided responsive services to address actuarial and financial analysis issues, whether the issues have been for a particular insurer or prevalent throughout the insurance industry. As the first company to have its rating process formally reviewed and accepted by Fannie Mae, Freddie Mac and HUD, Demotech has been leveling the playing field by offering Financial Stability Ratings® (FSRs) to insurers of all sizes. Demotech applies its broad actuarial and industry experience to its consulting services , which include pricing analysis and loss and loss adjustment expense reserve reviews.

Visit http://www.demotech.com for more information.

Irisa Wasson Client Services Coordinator Tel: 800/354-7207 Email: Email Contact