State National Again Earns "A" (Excellent) Financial Strength Rating from A.M. Best

Bedford, TX - July 16, 2009 - State National Group announced today that it has again earned an A.M. Best rating of "A" (Excellent), affirming the group's consistent financial performance and operational stability. The rating applies to the group's three intercompany pool members led by State National Insurance Company, Inc. (SNIC) and its wholly-owned subsidiaries, National Specialty Insurance Company (NSIC) and United Specialty Insurance Company (USIC).

A.M. Best is the largest and longest-established independent rating organization for the insurance industry. State National's rating recognizes the group's "consistent operating profitability, solid capitalization and adequate liquidity," according to A.M. Best.

"The affirmation of our 'A' rating confirms not only our financial strength, but also the consistency that customers have come to expect from State National for over 35 years," said Terry Ledbetter, President of State National Companies. "We have the disciplined strategy and resources in place to help our clients expand their operations and to grow our business as well."

A rating from A.M. Best is an independent opinion of an insurer's financial strength and ability to meet its ongoing insurance policy and contract obligations. It is based on a comprehensive quantitative and qualitative evaluation of a company's balance sheet, operating performance and business profile.

In its affirmation, A.M. Best highlighted State National's success in writing program business, noting that the company is "one of the leading providers of policy issuance and management services on program business administration for other specialty insurance organizations."

"Our 'A' rating is a reflection of the success and progress of our Lender and Program Services divisions," Ledbetter added. "Our ability to continue to earn the 'Excellent' rating from Best further reinforces client confidence in our strength and stability."