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November 8, 2007

Western National Insurance Group Comments on A.M. Best Rating Change

Effective November 5, A.M. Best has affirmed Western National Insurance Group's financial strength rating of A- (Excellent), and has revised the outlook from "Stable" to "Positive."

This affirmation and revision in outlook is based upon the Group's excellent risk-adjusted capitalization, trend of strong operating results, conservative investment policy and commitment to long-term agency relationships. It is also reflective of the successful integration of the Farmer's Home Group business in 2007.

"As A.M. Best noted in their rating rationale, Western National has shown continued profitability, focused risk exposure and disciplined underwriting and expense management," said company president and chief executive officer, Stuart C. Henderson, JD, CPCU. "This is the result of several years of hard work by our employees and business partners, and was attained despite significant catastrophe loss in 2006 and 2007. We are pleased to have an insurance specific and knowledgeable rating organization recognize the results of those efforts."

Western National Insurance Group is a super-regional insurance group with over $500 million in Assets and writing over $245 million in premium annually. The group consists of five regional Property and Casualty Insurance companies with shared administrative offices in Edina, Minnesota and a local underwriting and claim office in Seattle, WA. Western National Mutual Insurance Company writes personal and commercial lines in MN, WI, SD, ND and IA; Western National Assurance Company writes personal lines in WA, OR, NV and UT, and commercial lines in WA and OR; and Farmers Home Mutual Insurance Company and Western Home Insurance Company write personal lines in MN, WA, NV and UT. Pioneer Specialty Insurance Company will commence writing commercial lines in those territories in 2008. All of the companies' products are sold exclusively through professional independent agents.

For further information, contact:

Mary S. Manley
SVP Corporate Affairs & Administration
952-921-3820
mary.manley@wnins.com