American Community Downgraded

Subsequent to continued deterioration in American Community Mutual Insurance Co.’s surplus position, the FSR on the company was downgraded from “B-” to “C++” by A.M. Best Co. American Community recently entered into a series of modified coinsurance reinsurance transactions in an effort to satisfy regulatory risk-based capital requirements. Rate increases, tightened underwriting standards and a redesigned product portfolio have been implemented.