A.M. Best Places Ratings of Town and Country Mutual Insurance Company under Review with Negative Implications.

OLDWICK, N.J. -- A.M. Best Co. has placed the financial strength rating of B+ (Good) and issuer credit rating of "bbb-" of Town and Country Mutual Insurance Company (Town and Country) (Bryant, AR) under review with negative implications.

These rating actions are due in part to the continuation of underwriting losses in 2009, following a 40.5% surplus decline in 2008. Town and Country experienced frequent and severe storm losses from wind, hail and tornados in 2008, resulting in a $1.2 million underwriting loss. Furthermore, a severe ice storm in January 2009 also resulted in significant losses.

The ratings will remain under review pending further discussions with management regarding its capital management strategies, including the potential purchase of additional reinsurance, which is expected to be completed before the end of April 2009.

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

The principal methodologies used in determining these ratings, including any additional methodologies and factors, which may have been considered, can be found at www.ambest.com/ratings/methodology.

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.