PORTLAND, Maine, June 27, 2000 – The nation's top financial company rating service has announced that it has ranked Maine Employers' Mutual Insurance Company (MEMIC) as an 'A' (Excellent) for its financial strength and ongoing performance.

"This rating places MEMIC among a select group of insurance companies across the country, and above many of its peers," MEMIC President and CEO John T. Leonard said. "Our policyholders and the entire state of Maine should feel secure in knowing that this is a strong company and is more-than-able to meet its financial obligations."

The rating reflects A.M. Best's view of MEMIC as a financially secure company that is strongly capitalized, operating soundly, and has a solid profile in the Maine market.

MEMIC's rating is particularly impressive given that it writes a single line of insurance within a single state. Rating organizations generally believe that these companies can be adversely affected by state regulatory actions and therefore often do not earn such a high rating. But, in MEMIC's case, Best was impressed with the company's current performance as well as its strategic positioning for future growth, including the launch of its news subsidiary, MEMIC Indemnity Company of New Hampshire which will begin operation this summer.

In its report on the company, A. M. Best cited the company's emphasis on workplace safety in Maine as a factor in the A rating.

"This rating speaks volumes about MEMIC's performance, including our strong underwriting team, our compassionate claims management and our standard-setting safety programs," Leonard said.

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About MEMIC

Maine Employers' Mutual Insurance Company (MEMIC), based in Portland, Maine, is the state's largest workers' compensation insurance company, insuring nearly 19,000 of the state's 27,000 insured businesses. A private mutual company, MEMIC serves as the guarantor of workers' compensation insurance for Maine employers and their employees. Established in 1993, MEMIC has led a campaign to reduce workplace injuries through awareness and education. As a result, lost-time injuries have dropped by 30 percent since 1993.

MEMIC is the parent company of MEMIC Indemnity Co., a New Hampshire-based workers' compensation specialty company which will begin operations this summer.

Both MEMIC and MEMIC Indemnity Company are dedicated to writing insurance through independent agents and brokers.