Excellent) - A.M. Best Downgrades Ratings of Southern General Group and Its Members

A.M. Best Co. has downgraded the financial strength rating to B++ (Good) from A- (Excellent) and issuer credit rating to ?bbb+? from ?a-? of Southern General Group (Southern General) and its members, Southern General Insurance Company and Southern General Underwriters Insurance Company. All entities are located in Marietta, GA. The outlook for these ratings is stable.

These rating actions follow the continued deterioration in Southern General?s underwriting and operating performance in recent years, impacted by increased weather events as well as competitive market conditions and economic factors. In response to these declining operating trends, various actions recently have been undertaken and planned by the group regarding expense management and underwriting initiatives in an effort to streamline operations and improve underwriting profitability.

The ratings and outlook of Southern General are supported by the group?s continued favorable risk-adjusted capitalization, solid fee income, conservative investment portfolio and well established market presence with its long-term agency relationships.

For Best?s Credit Ratings, an overview of the rating process and rating methodologies, visit www.ambest.com/ratings.

The principal methodologies used in determining these ratings, including any additional methodologies and factors, which may have been considered, can be found at www.ambest.com/ratings/methodology.

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.