A.M. Best Upgrades Ratings of Premier Group Insurance Company

* Reuters is not responsible for the content in this press release.

Tue May 19, 2009 3:31pm EDT 

OLDWICK, N.J.--(Business Wire)--
A.M. Best Co. has upgraded the financial strength rating (FSR) to A- (Excellent)
from B++ (Good) and issuer credit rating (ICR) to "a-" from "bbb+" of Premier
Group Insurance Company (Premier) (Murfreesboro, TN). The outlook for these
ratings has been revised to stable from positive. 

The ratings reflect Premier`s excellent capitalization and liquidity, low
leverage and conservative investment portfolio. The ratings also recognize
Premier`s solid operating performance driven by strong underwriting results,
which compare favorably to the workers` compensation industry composite
averages. The ratings also consider the financial benefits and enhanced business
profile derived from Premier`s ultimate parent company, National HealthCare
Corporation (NHC) [NYSE: NHC]. Premier has been able to leverage its monoline
focus and its role within NHC to achieve consistently profitable underwriting
results. 

Partially offsetting these positive factors are the company`s relatively high
retention per claim and limited scale and business diversification. While
Premier has a stable source of business from NHC and is able to write business
from third parties, its business volumes, growth opportunities and dividend
policy are largely dependent on NHC`s strategies. 

For Best`s Credit Ratings, an overview of the rating process and rating
methodologies, please visit www.ambest.com/ratings. 

The principal methodologies used in determining these ratings, including any
additional methodologies and factors that may have been considered, can be found
at www.ambest.com/ratings/methodology. 

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:
Nick Dranchak, 908-439-220, ext. 5629
nick.dranchak@ambest.com
or
Steven Chirico, CPA, 908-439-2200, ext. 5087
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 2009
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