A.M. Best Affirms Ratings of Commerce Group, Its Members and The Commerce Group, Inc.

OLDWICK, N.J. -- A.M. Best Co. has affirmed the financial strength rating (FSR) of A+ (Superior) and issuer credit ratings (ICR) of "aa-" of Commerce Group (Commerce), its lead company, The Commerce Insurance Company, and four inter-company pool members.

Concurrently, A.M. Best has affirmed the ICR of "a-" of Commerce's parent holding company, The Commerce Group, Inc., which recently was acquired by Spanish insurer, MAPFRE, S.A. (Madrid, Spain). A.M. Best also has affirmed the debt rating of "a-" of $300 million 5.95% senior unsecured notes due 2013 of The Commerce Group Inc. The outlook for all ratings is stable. All companies above are domiciled in Webster, MA unless otherwise noted. (See below for a detailed listing of the companies and ratings.)

The ratings reflect Commerce's solid capitalization, consistently strong operating performance and local market expertise. In addition, Commerce's wholly owned subsidiaries, Commerce West Insurance Company (Pleasanton, CA) and American Commerce Insurance Company (Columbus, OH), provide geographic diversification and rate flexibility to the group.

These positive rating factors are partially offset by the group's concentration of business in Massachusetts and limited product scope, which is focused on private passenger automobile. Commerce's operating performance was strong; however, it remains influenced by the Massachusetts personal automobile market and susceptible to weather-related losses. As the state's leading writer of personal lines business, Commerce benefits from its brand name recognition, adherence to strict underwriting fundamentals and in-depth understanding of the personal lines marketplace.

The FSR of A+ (Superior) and ICRs of "aa-" have been affirmed for Commerce Group and its following inter-company pool members:

* The Commerce Insurance Company

* Citation Insurance Company (MA)

* Commerce West Insurance Company

* American Commerce Insurance Company

* State-Wide Insurance Company

The ICR of "a-" has been affirmed for The Commerce Group, Inc.

The following debt rating has been affirmed:

The Commerce Group, Inc.---

-- "a-" on $300 million 5.95% senior unsecured notes, due 2013

For Best's Debt Ratings, all other Best's Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings.

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.