A.M. Best Affirms and Withdraws Ratings of Magna Insurance Company, A Hancock Holding Company Subsidiary.

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 Magna Insurance Company (Magna). The outlook for both ratings is stable. Magna is a wholly owned subsidiary of Hancock Holding Company (both of Gulfport, MS) (Nasdaq: HBHC).

Subsequently, A.M. Best has withdrawn the FSR and ICR and assigned the company a category NR-4 (Company Request) in response to management's request that Magna be removed from A.M. Best's interactive rating process.

The ratings of Magna have historically reflected its generally positive operating results and favorable risk-adjusted capital position relative to its insurance and investment risks. However, A.M. Best does note that Magna has reported a decrease in operating results in the past two years. Through third quarter 2007, Magna reported a pre-tax operating loss of approximately $1.4 million, its largest loss over the past five-year period. Management has stated that this loss is primarily attributable to costs associated with the de-emphasis of some lines of business as well as moving the processing and administrative functions to new providers, all of which are expected to be completed by year-end. Due to the current adequate levels of risk-adjusted capitalization, A.M. Best believes that Magna presently has the ability to meet its ongoing obligations. The final ratings of Magna do not reflect further losses that may be incurred or any potential changes in the strategic focus or capital structure that management may make in the future. Given Magna's present limited operating status, A.M. Best has withdrawn the ratings at management's request.

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.