A.M. Best Revises Ratings of Vesta Insurance Group

OLDWICK, N.J.--(BUSINESS WIRE)--July 6, 2006--A.M. Best Co. has revised the financial strength rating (FSR) to E (Under Regulatory Supervision) from C++ (Marginal) and the issuer credit ratings (ICR) to "d" from "b" for the property/casualty affiliates of Vesta Insurance Group (Vesta). Concurrently, A.M. Best has revised the ICR to "d" from "cc" for Vesta's parent, Vesta Insurance Group, Inc. (Other OTC: VTAI). Additionally, A.M. Best has revised the senior debt ratings to "d" from "cc" for Vesta's $100 million 8.75% senior unsecured debentures, due 2025 and to "d" from "c" for Vesta Capital Trust I's $100 million 8.525% deferrable capital securities, due 2027. All companies are located in Birmingham, AL.

Published on July 7, 2006

The rating revisions pertain to the following property/casualty affiliates of the Vesta Insurance Group:

-- Vesta Fire Insurance Corporation

-- Florida Select Insurance Company

-- The Hawaiian Insurance & Guaranty Company, Limited

-- Shelby Casualty Insurance Company

-- The Shelby Insurance Company

-- Texas Select Lloyds Insurance Company

-- Vesta Insurance Corporation

For Best's Debt Ratings, all other Best's Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings.

For current Best's Ratings, independent data and analysis on more than 3,000 individual property/casualty companies and A.M. Best groups, please visit www.ambest.com/pc.

A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. For more information, visit A.M. Best's Web site at www.ambest.com.

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