A.M. Best Upgrades Ratings of Hermitage Insurance Company

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 Hermitage
Insurance Company (Hermitage) (White Plains, NY). The outlook for these ratings
has been revised to stable from positive.

Additionally, A.M. Best has revised the outlook to positive from stable and
affirmed the FSR of B++ (Good) and ICR of "bbb+" of Kodiak Insurance Company
(Kodiak)(West Trenton, NJ).

On February 27, 2009, Tower Group, Inc. (Tower) (headquartered in New York)
(NASDAQ: TWGP) closed the acquisition of HIG, Inc. HIG, Inc. is a holding
company that directly owns Hermitage and Kodiak.

The rating actions reflect Hermitage`s participation in the Tower Group
Companies (New York) pool effective April 1, 2009. Hermitage maintains
supportive risk-adjusted capitalization, and its operating performance has been
strong over the most recent five-year period.

The revised outlook of Kodiak reflects A.M. Best`s expectation that Kodiak will
become a member of the Tower Group Companies pool or receive affiliated
reinsurance support.

Kodiak`s risk-adjusted capitalization supports its current ratings, and the
company`s underwriting results compare favorably to its peer group composite.

Concurrently, A.M. Best has withdrawn the FSR of B++ (Good) and ICR of "bbb+" of
the Hermitage Insurance Group and has assigned a category NR-5 (Not Formally
Followed) to the FSR and an "nr" to the ICR as the group no longer exists and
its members are now part of Tower.

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:
Devin Inskeep, 908-439-2200, ext. 5449
devin.inskeep@ambest.com
or
Joseph Roethel, 908-439-2200, ext. 5630
joseph.roethel@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