Palisades Safety & Insurance Association Receives Rating Upgrade From A.M. Best Company

    SUMMIT, N.J., March 21 Palisades Safety & Insurance
Association, and the Palisades Group (comprised of Palisades Safety and
Insurance Association and Palisades Insurance Company) a growing, service
oriented New Jersey automobile insurer today announced that the Palisades
Group has been rated B+g, "Secure", by the A.M. Best Company, the world's
premier organization for evaluation of insurance companies.  A.M. Best's
Rating is derived from a comprehensive analysis of an insurers' financial
strength, operating performance and market profile.
    A.M. Best has closely monitored the continued growth and success of the
Palisades Group.  The B+g rating report noted that the upgrade "reflects the
Group's favorable earnings trend, good capital generation and reduced
reinsurance dependence."  The report also noted "the company has consistently
demonstrated a focused operating strategy, knowledge of local market
conditions, and conservative reserving policy."
    This is a significant milestone for Palisades, which has reached this
benchmark less than three years after its first Best rating as a result of a
steady increase in strength, size, profitability, and success.
    "The A.M. Best's independent rating is the industry standard for assessing
the financial strength of insurance companies," said Gerry Wilson, President
of Palisades.  "Palisades has implemented numerous initiatives to foster
long-term strength and this rating upgrade is a direct reflection of the hard
work and support of our agents, employees, and our Members."
    According to Wilson, this new rating will provide agents, consumers and
financial market participants with an objective benchmark to evaluate
Palisades' operations and competitive viability.  "Palisades plans to continue
its aggressive growth strategy and increase its ability to reach new markets,
and implement innovative products and services," added Wilson.

    About Palisades Safety & Insurance Association
    Established in 1992, The Palisades Group is a $54 million personal line
insurer in the State of New Jersey insuring more than 53,000 cars.  The
Summit-based company writes exclusively in New Jersey through independent
agents and has experienced consistent growth over the past eight years to
become the 8th largest independent agent insurer in New Jersey.  For further
information on Palisades Safety & Insurance Association and Palisades
Insurance Company please visit http://www.palisades.com.