A.M. Best Gives American Community a Rating Upgrade

April 5, 2004

Michigan-based American Community Mutual Insurance Company, a provider of individual and group health insurance, announced that A.M. Best Company has upgraded the company’s financial strength rating to a “B (Fair)” from a “B-” with a positive outlook.

The improved rating affirms American Community’s ability to meet its obligations to its policyholders, and reportedly shows that the industry has taken note of the company’s three years of continuous monthly profitability.

According to A.M. Best, “the upgrade reflects American Community’s considerably improved surplus position and favorable operating results over the past few years. The company has taken a number of corrective actions to return to underwriting profitability, which included implementing rate increases, tightening underwriting standards and more accurately pricing the risks being written. In addition, American Community continues its expense
reduction efforts and technological advancements.”

“Our upgraded A.M. Best rating sends a message of confidence to our agents and policyholders,” said American Community President & CEO Gerald Meach. “It underscores the improved financial and underwriting results we’ve experienced for the last three years, which are continuing into 2004.”

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