A.M. Best Comments on Physicians Mutual Insurance Company’s Proposed Purchase of Reserve National Insurance Company

A.M. Best Co. has commented that the financial strength rating of A (Excellent) and issuer credit rating of “a+” of Physicians Mutual Insurance Company (Physicians Mutual) (Omaha, NE) are unchanged. The stable rating outlook also is unchanged.

This comment follows the recent announcement of Physicians Mutual’s agreement in principle to purchase Reserve National Insurance Company (Reserve National) a life/health subsidiary of Unitrin, Inc. If the transaction proceeds, it is expected to close by the end of second quarter 2010.

Reserve National markets hospital indemnity, Medicare supplement and other supplemental accident and health insurance products primarily to individuals and small businesses in rural areas of the United States. Physicians Mutual maintains more than adequate surplus for its current ratings to fund this proposed transaction, which is consistent with its strategic position in the supplemental health and senior markets.

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