A.M. Best Withdraws Ratings of Farm and City Insurance Company

A.M. Best Co. has withdrawn the financial strength rating (FSR) of A- (Excellent) and the issuer credit rating (ICR) of "a-” of Farm and City Insurance Company (Farm & City). These rating actions reflect Farm & City having merged with and into EMCASCO Insurance Company (EMCASCO), a wholly owned subsidiary of EMC Insurance Group, Inc. (NASDAQ:EMCI), effective December 31, 2007. All companies are domiciled in Des Moines, IA. Historically a nonstandard automobile insurer, Farm & City ceased writing direct business and implemented non-renewal procedures on all existing business in 2004. However, the company continued to participate in the EMC Insurance Companies intercompany pooling agreement, receiving 1.5% of all pool business. As a result of the merger, EMCASCO assumed Farm & City’s 1.5% participation interest in the intercompany pool. 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.