A . M. BEST RATING

Seneca Insurance Group, Seneca Insurance Company and Seneca Specialty Insurance Company are rated “A-“ VIII by A. M. Best Company. Seneca has been rated “A-“ since 1994. In their May 4, 2007 report, a full copy of which is available upon request, A. M. Best Company explains their rating as follows:

“Rating Rationale: This rating reflects the group’s historically strong and sustained underwriting and operating performance and excellent capital position….The positive rating factors are derived from the group's diverse product offering and management's emphasis on underwriting process and control, ability to react to changing market conditions, and creation of profitable new business opportunities. The group has delivered loss ratios significantly lower than those of the industry and combined ratios of 100% or less since 1995. Underwriting results have been notable for the absence of adverse loss development on either a calendar or accident year basis over the past five years. Additionally, Seneca's results have not benefited from stop loss or financial reinsurance.”

“Reserve Quality: For each of the past five years reserves have developed favorably on both a calendar and accident year basis. Seneca recognized $20 million of reserver redundancy in 2005, which contributed to an already positive combined ratio and caused operating profits to be the highest in Seneca's History. The reserve redundancies attributable to Seneca’s consistently conservative reserving practices and emphasis on lines with short tails.