A.M. Best Upgrades Issuer Credit Rating of MGA Insurance Company, Inc.

OLDWICK, N.J. -- A.M. Best Co. has upgraded the issuer credit rating (ICR) to "bb+" from "bb" and affirmed the financial strength rating of B (Fair) of MGA Insurance Company, Inc. (MGA). Concurrently, A.M. Best has upgraded the ICR to "b" from "b-" of MGA's publicly traded holding company, GAINSCO, INC. [NYSE Alternext: GAN]. The outlook for all ratings is stable. Both companies are domiciled in Dallas, TX.

The upgrading of MGA's ICR reflects its improved risk-adjusted capital position, generally profitable operating performance emanating from its personal nonstandard automobile (NSA) business and its improved underwriting leverage measures. Historically, elevated underwriting leverage is the result of MGA's strategic business development in the NSA business, although premium growth has been tempered in recent years.

These rating factors are somewhat offset by MGA's historically unfavorable loss reserve development trends and variable operating performance.

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.