A.M. Best Affirms Ratings of National Security Group, Omega One Insurance and National Security Insurance.

OLDWICK, N.J. -- A.M. Best Co. has affirmed the financial strength rating (FSR) of B++ (Good) and the issuer credit rating (ICR) of "bbb" of National Security Fire and Casualty Company and the FSR of B+ (Good) and ICR of "bbb-" of its wholly-owned subsidiary, Omega One Insurance Company, Inc. (Omega One), both members of the National Security Group (National Security). Concurrently, A.M. Best has affirmed the FSR of B (Fair) and has assigned an ICR of "bb" to the life/health company, National Security Insurance Company. A.M. Best has also affirmed the ICR of "bb" of The National Security Group, Inc. [NASDAQ: NSEC]. The outlook for all ratings is stable. All companies are domiciled in Elba, AL.

The ratings of National Security reflect its adequate risk-adjusted capitalization and well-established niche position as a provider of dwelling/fire coverage in the Southeast. However, somewhat offsetting these positive rating factors is the group's geographic and product concentration in the Gulf Coast states, which subjects National Security's earnings and surplus to weather-related catastrophes.

The ratings of Omega One acknowledge its low underwriting leverage and favorable operating performance. Partially offsetting these positive rating factors is the company's geographic concentration that leaves it susceptible to severe weather-related losses, as well as competitive and regulatory pressures.

The ratings of National Security Insurance Company recognize the recent decline in its capital and surplus, fluctuating operating results and limited geographic profile. Partially offsetting these positive attributes are the company's adequate level of risk-adjusted capitalization, recent--albeit modest--growth of new premium and improved level of persistency on its ordinary life line.

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 full-service credit rating organization dedicated to serving the financial services industries, including the banking and insurance sectors. For more information, visit www.ambest.com.