A.M. Best Upgrades, Assigns and Affirms Ratings of NFU Group and Its Members.

OLDWICK, N.J. -- A.M. Best Co. has upgraded the financial strength rating (FSR) to A (Excellent) from A- (Excellent) and has assigned an issuer credit rating (ICR) of "a" to NFU Group (NFU) (Greenwood Village, CO). Additionally, A.M. Best has upgraded the FSR to A (Excellent) from A- (Excellent) and the ICR to "a" from "a-" for NFU Group's member, National Farmers Union Property and Casualty Company. A.M. Best also has affirmed the FSR of A- (Excellent) and the ICR of "a-" of NFU's independently rated member, United Security Insurance Company (Greenwood Village, CO). The outlook for all ratings is stable. (See below for a detailed listing of companies and ratings.)

The upgrades reflect the rating enhancement and ownership by NFU's ultimate parent, QBE Insurance Group Limited (QBE) (Australia). QBE has supported and maintained NFU as a strategic affiliate since its purchase in late 2005. With the acquisition of Winterthur U.S. Group (Wilmington, DE), which took place earlier in 2007, NFU now has a greater relevance in regards to QBE's regional strategy in the United States.

The ratings also recognize NFU's strong operating results over the past several years, niche expertise, committed management team and strong risk-adjusted capital position. NFU is a regional underwriter of both personal and commercial lines coverages for farm insurance and rural communities in the Midwestern states. The organization is further supported by strong brand awareness in its local markets.

Partially offsetting these positive rating factors is NFU's above average cost structure, which is primarily attributable to its exclusive agency force, as well as competitive market pressures as the company moves through the soft market cycle. Nonetheless, the rating upgrades reflect QBE's ownership and commitment, NFU's favorable operating performance over the past several years and the expectation that profitability will remain good and capitalization will continue to be supportive of the ratings.

The FSR has been upgraded to A (Excellent) from A- (Excellent) and the ICR of "a" has been assigned to NFU Group.

The FSR has been upgraded to A (Excellent) from A- (Excellent) and the ICR to "a" from "a-" of NFU Group's member, National Farmers Union Property and Casualty Company.

The FSR of A- (Excellent) and the ICR of "a-" have been affirmed for NFU Group's independently rated member, United Security Insurance Company.

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.