-- Net Income of $0.24 per diluted share

-- Combined Ratio improved to 87.7%

-- Gross Written Premium up 76.8%

-- Book Value per share of $7.98

SOUTHFIELD, Mich., May 4 /PRNewswire-FirstCall/ --

First Quarter 2009 Highlights and Overview:

-- Net operating income, a non-GAAP measure, increased 130.8% to $16.3

million, or $0.28 per diluted share on 57.4 million shares, in the first

quarter of 2009, up from $7.1 million, or $0.19 per diluted share on

37.1 million shares, in the first quarter of 2008.

-- Net income increased by 91.8% to $13.5 million, or $0.24 per diluted

share, in the first quarter of 2009, compared to $7.1 million or $0.19

per diluted share for the first quarter of 2008.

-- Combined ratio improved by 6.2 percentage points to 87.7% in the first

quarter of 2009, compared to 93.9% for the first quarter of 2008.

-- Book value per share increased to $7.98 per share, compared to $7.64 per

share at December 31, 2008.

Meadowbrook Insurance Group, Inc. (NYSE: MIG) reported first quarter net operating income, a non-GAAP measure, grew by 130.8% to $16.3 million or $0.28 per diluted share, up from $7.1 million or $0.19 per diluted share in the first quarter of 2008. Despite after- tax realized losses of $2.8 million or $0.04 per diluted share, due to other than temporary impairments of certain investments, net income increased by 91.8% to $13.5 million, or $0.24 per diluted share in the first quarter of 2009, compared to $7.1 million, or $0.19 per diluted share in the first quarter of 2008. The other than temporary impairments represent just 2/10ths of 1 percent of invested assets of $1.1 billion and were related to certain asset- backed securities, corporate bonds, and to a lesser extent, preferred stocks.

The 2009 first quarter GAAP combined ratio was 87.7%, compared to 93.9% for the first quarter of 2008. The loss ratio for the first quarter of 2009 was 58.0%, compared to 61.7% for the first quarter of 2008. The first quarter 2009 loss ratio includes 6.5 percentage points of favorable prior year reserve development, compared to 4.3 percentage points of favorable prior year reserve development in the first quarter of 2008. The expense ratio for the first quarter of 2009 was 29.7%, compared to 32.2% in the first quarter of 2008. The expense ratio improvement is due primarily to the reduction of insurance related assessments, expense savings and leveraging of post-merger fixed costs.

First quarter gross written premium was $160.0 million, compared to $90.5 million in the first quarter of 2008. First quarter gross written premium includes $52.1 million from Century Insurance. Excluding gross written premium from Century Insurance, Meadowbrook's gross written premium increased by 19.3%.

Commenting on the results, Meadowbrook President and Chief Executive Officer Robert S. Cubbin stated: "We are pleased with our results for the first quarter, particularly our net operating income, (excluding amortization) of $17.8 million, or $0.31 per diluted share. Growth in gross written premium was 76.8%, which includes Century Insurance. We remain optimistic about our current revenue growth prospects and the development of additional revenue enhancing synergies from the merger. Overall, we have been selective about our growth and we are maintaining our focus on price adequacy. Our combined ratio improvement is due to our consistent underwriting discipline and favorable development on prior accident year loss reserves, primarily in the general liability line, as well as a reduction in the residual market charges on our workers' compensation line of business. While we had an after-tax realized loss of $2.8 million on our investment portfolio, we continue to be conservatively positioned and hold high quality investments. 2.0% of our portfolio is in equities, and our fixed income portfolio has an average S&P rating of AA+."

Other Matters

Shareholders' Equity:

At March 31, 2009, shareholders' equity was $458.2 million, or $7.98 per common share, compared to $438.2 million, or $7.64 per common share, at December 31, 2008. Common shares outstanding at March 31, 2009 were 57,447,707 compared to 37,021,032 at March 31, 2008. The increase in outstanding shares is primarily due to the issuance of 21.1 million shares, or $122.7 million of new equity in conjunction with the ProCentury merger on July 31, 2008.

At March 31, 2009, our debt-to-equity ratio was 30.3%, compared to 32.2% at December 31, 2008. Our debt to equity ratio excluding debentures was 12.6% at March 31, 2009, compared to 13.8% at December 31, 2008.

Dividend and Share Repurchases:

On May 1, 2009, our Board of Directors declared a quarterly dividend of $0.02 per share payable on June 1, 2009 to shareholders of record as of May 15, 2009.

We did not repurchase any shares during the first quarter of 2009. As of March 31, 2009, we have available up to 2,200,000 shares remaining under the share repurchase authorization.

Investment Portfolio:

For the first quarter of 2009 our pre-tax book yield was 4.4%, which was unchanged compared to the first quarter of 2008. The duration of the portfolio was 4.3 years at March 31, 2009, compared to 4.1 years at March 31, 2008 and 4.5 years at December 31, 2008. The average pre-tax book yield on new purchases during the first quarter of 2009 was 5.3%.

Net investment income for the first quarter of 2009 was $12.3 million, up from $7.1 million in the first quarter of 2008. The increase is primarily related to investment income from the Century Insurance portfolio.

2009 Expectations

The range of full year 2009 guidance remains unchanged. We expect net operating income in a range of $46 million to $52 million, or $0.80 to $0.90 per share. We are still comfortable with our gross written premium range of $725 million to $740 million. While our combined ratio is now expected to be at or below the low end of the range of 95.0% to 97.0%, margins on fee-for-service revenue, which include the impact of variable compensation, may be lower than expected. Accordingly, our overall guidance remains unchanged although we now expect our full year results to be in the higher end of the earnings per share range. Commenting on the 2009 outlook, Mr. Cubbin stated: "Our new program launches in 2008 and early 2009 have begun to contribute to our earned premium levels in a meaningful way, and we expect that our new initiatives in the workers' compensation market and our continuing work on merger-related revenue enhancements will support our production goals. We continue to observe some minor rate declines, but each month appears to be closer to the overall upward trend that is much anticipated in the market."

About Meadowbrook Insurance Group

Meadowbrook Insurance Group, Inc., based in Southfield, Michigan, is a leader in the specialty program management market. Meadowbrook includes several agencies, claims and loss prevention facilities, self-insured management organizations and seven property and casualty insurance underwriting companies, including one in Bermuda. Meadowbrook has twenty-six locations in the United States. Meadowbrook is a risk management organization, specializing in specialty risk management solutions for agents, professional and trade associations, and small to medium-sized insureds. Meadowbrook Insurance Group, Inc. common shares are listed on the New York Stock Exchange under the symbol "MIG." For further information, please visit Meadowbrook's corporate web site at www.meadowbrook.com.

Certain statements made by Meadowbrook Insurance Group, Inc. in this release may constitute forward-looking statements including, but not limited to, those statements that include the words "believes," "expects," "anticipates," "estimates," or similar expressions. Please refer to the Company's most recent 10-K, 10-Q, and other Securities and Exchange Commission filings for more information on risk factors. Actual results could differ materially.