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

Bedford, TX - August 27, 2010 - State National Group announced today that it has again earned a rating of "A" (Excellent) from A.M. Best, 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).

State National's rating recognizes the group's "consistent operating profitability, solid capitalization and strong liquidity position," according to A.M. Best. In addition, A.M. Best noted that State National's current rating outlook of "Stable" is based on the expectation of continued operating success and earnings generation over the near term.

"The affirmation of our 'A' rating confirms our financial strength, and A.M. Best's assessment that we will continue our performance speaks to our consistency and stability," said Terry Ledbetter, president of State National Companies.

In its affirmation, A.M. Best highlighted State National's "favorable operating results over the long term" and noted that State National "maintains a solid level of capitalization." Positive factors included State National's success in writing program business, with A.M. Best noting that the company is "one of the leading providers of policy issuance and management services on program business administration."

"In an era where many insurers struggle, State National continues to experience strong growth across our operations," Ledbetter added. "Our success comes from developing a winning strategy that allows our clients to control their own destiny and capitalize on market opportunity."

A.M. Best is the largest and longest-established rating organization for the insurance industry. 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.

"Our 'A' rating reflects success across both State National divisions," Ledbetter added. "Our customers can be confident in our strength and stability."