A.M. Best Affirms Ratings of First American Property/Casualty Companies.

Revises Outlook to Negative

OLDWICK, N.J. -- A.M. Best Co. has affirmed the financial strength rating of A (Excellent) and the issuer credit ratings (ICR) of "a" of First American Corporation Property/Casualty Companies (First American P&C Group) (Santa Ana, CA) and its member companies. The outlook has been revised to negative from stable.

The ratings reflect First American P&C Group's continued favorable operating performance due, in part, to strong underwriting discipline and firm market conditions. The outlook reflects the negative implications of the recent downgrading of the ICR and debt ratings of the parent holding company, First American Corporation (Santa Ana, CA) (NYSE: FAF), whose financial flexibility has been reduced. (Please see September 10, 2007 press release on First American Corporation.) This potentially can result in reduced access to capital and higher dividend requirements for First American P&C Group.

The FSR of A (Excellent) and the ICRs of "a" have been affirmed with an outlook revised to negative from stable for First American Corporation Property/Casualty Companies and its following members:

* First American Property & Casualty Insurance Company

* First American Specialty Insurance Company

For 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.