A.M. Best Affirms Rating of BancInsure, Inc.

OLDWICK, N.J.--(Business Wire)--
A.M. Best Co. has affirmed the financial strength rating of A-
(Excellent) and issuer credit rating of "a-" of BancInsure, Inc.
(BancInsure) (Oklahoma City, OK). The outlook for both ratings is
stable.

The ratings reflect BancInsure favorable operating performance,
capitalization that supports its rating level and its strong niche
market focus.

Partially offsetting these positive factors is the company's
fluctuating return measures over a five-year period and the risks
associated with the debt issued at the parent company. Further, A.M.
Best continues to monitor the run-off of its medical malpractice book
of business, which has indicated a favorable status to date.

The ratings recognize BancInsure's excellent business position
with its continued close ties to community banks that include
exclusive endorsement agreements with 18 separate bankers
associations. Management believes that its new ownership structure has
increased the effectiveness of its marketing entities, while the
reduction in its board level from 31 to 14 directors has streamlined
its decision-making process.

Financing through trust preferred securities at its holding
company followed a management buy-out in January 2003. Although this
debt is currently being serviced by a newly formed marketing entity
for BancInsure's products, there remains the risk that the company
could be used to partially service this debt should its marketing
entity's cash flows deteriorate. Revenue stream of the marketing
entity is derived from fee and commission. Nonetheless, under its
revised operating structure, the company has profitably grown its book
of business, serviced its debt and generated favorable return
measures.

For current Best's Ratings and independent data on the captive and
alternative insurance market, please visit www.ambest.com/captive.

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.

A.M. Best Co.
Analysts:
Alexander Sarfo, 908-439-2200, ext. 5779
alexander.sarfo@ambest.com
or
Steve Chirico, 908-439-2200, ext. 5097
steven.chirico@ambest.com
or
Public Relations:
Jim Peavy, 908-439-2200, ext. 5644
james.peavy@ambest.com
or
Rachelle Morrow, 908-439-2200, ext. 5378
rachelle.morrow@ambest.com

Copyright Business Wire 2008