Best Affirms Fremont FSR

November 2, 2005

A.M. Best Co. has affirmed the financial strength rating of B+ (Very Good) of Michigan-based Fremont Insurance Company (Fremont). The rating outlook remains positive.

The rating reflects Fremont’s well-established market presence as a writer of homeowners insurance in Michigan, improved quality of capital, stabilized overall operating results through the elimination of unprofitable business, tightened underwriting guidelines and expansion into less catastrophe prone areas of Michigan.

These favorable rating factors are offset by Fremont’s historically lower performance measures, fluctuating reserve development and elevated net premium leverage. In addition, the risks inherent in the company’s geographic concentration in the state of Michigan may subject the company to weather-related loss exposure and potential adverse legal and regulatory conditions.

Fremont writes commercial and personal auto, homeowners, mobile homeowners, farmowners, commercial multi-peril and inland marine coverages exclusively in Michigan. In recent years, the company added boiler and machinery coverage, personal, farm and commercial umbrella, as well as a yacht program to its product offering.

Concurrently, A.M Best has assigned issuer credit ratings of “bbb-” to Fremont Insurance Company and “bb-” to Fremont’s holding company, Fremont Michigan InsuraCorp Inc. Both rating outlooks are positive.

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