A.M. Best Co. has upgraded the financial strength rating (FSR) to B+ (Good) from B (Fair) and the issuer credit rating to “bbb-“ from “bb+” of National Security Insurance Company (NSIC). The outlook for both ratings is stable. A.M. Best also has affirmed the FSR of B++ (Good) and ICR of “bbb” of National Security Fire and Casualty Company (NSFC). The outlook for these ratings is negative. In addition, A.M. Best has affirmed the FSR of B+ (Good) and ICR of “bbb-” of NSFC’s wholly owned subsidiary, Omega One Insurance Company, Inc. (Omega). The outlook for both ratings is stable. Concurrently, A.M. Best has affirmed the ICR of “bb” of the parent holding company, The National Security Group, Inc. (NSGI) (Wilmington, DE) [NASDAQ: NSEC]. The outlook for this rating is negative. All companies are domiciled in Elba, AL, unless otherwise specified. The rating actions taken on NSIC reflect A.M. Best’s belief that the financial resources of the life company will not be materially impacted by the Mobile Attic, Inc. lawsuit settlement. These rating actions also reflect NSIC’s favorable stand-alone risk-adjusted capitalization, modestly increasing capital trends, a generally conservative fixed-income investment portfolio, which is currently in a unrealized gain position and its positive—albeit modest—overall net operating performance. These positive factors are offset by NSIC’s limited geographic profile and the challenges it faces to manage its modest capital levels, sustain and improve its operating performance and reverse declining trends in its net premium growth. Given the recent positive movement on NSIC’s ratings, A.M. Best believes the company is well positioned at its current rating level. Future positive actions could occur on NSIC’s ratings from positive movement in the parent’s ratings. Key rating factors that could result in negative actions on the company’s ratings include a meaningful erosion of absolute and/or risk-adjusted capitalization, a deterioration of operating performance below A.M. Best’s expectations or negative movement in the parent and/or property and casualty affiliates’ ratings.