A.M. Best Upgrades Issuer Credit Ratings of Fremont Insurance Company and Fremont Michigan InsuraCorp.

OLDWICK, N.J. -- A.M. Best Co. has upgraded the issuer credit rating (ICR) to "bbb+" from "bbb" and affirmed the financial strength rating (FSR) of B++ (Good) of Fremont Insurance Company (Fremont) [OTCBB: FMMH]. The outlook for the ICR is positive, while the outlook for the FSR has been revised to positive from stable. A.M. Best also has upgraded the ICR to "bb+" from "bb" of Fremont's holding company, Fremont Michigan InsuraCorp, Inc. The outlook for this rating is positive. Both companies are domiciled in Fremont, MI.

The ratings reflect Fremont's well-established presence as a writer of personal lines insurance in its home state of Michigan, strong capitalization, consistently strong operating profits driven by positive underwriting results, ongoing agency management/improvement strategies, tightened underwriting guidelines and expansion into less catastrophe-prone areas of Michigan.

These favorable rating factors are offset by Fremont's somewhat elevated net premium leverage and the risks inherent in its geographic concentration in the state of Michigan, which may subject the company to weather-related loss exposure, potentially adverse legal and regulatory conditions, as well as competitive market pressures. Management's current strategies to temper the company's exposure to these risks support its current rating outlook.

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.