661 East Davis Street

Post Office Box 703

Elba, Alabama 36323

PRESS RELEASE

FOR IMMEDIATE RELEASE

For Additional Information Contact: Brian R. McLeod, Chief Financial Officer, at (334) 897-2273 Ext. 241.

Elba, Alabama (November 11, 2005)... National Security Group releases updated estimates on third quarter hurricane losses

For the three month and nine month periods ended September 30, 2005, operating results were adversely impacted by three hurricanes, Dennis, Katrina and Rita, impacting our policyholders in the states of Alabama, Mississippi and Louisiana. National Security Group has revised earlier estimates of incurred losses as additional information has become available. These revised estimates will be reflected in National Security third quarter and nine month earnings results to be released on November 14, 2005.

The current estimate of total insured losses from Hurricane Dennis is $620,000. The current estimate of total insured losses from Hurricane Katrina, which is the projected to be the largest catastrophic event to ever impact the US insurance market and this Company, is $22,400,000. The current estimate of total insured losses from Hurricane Rita is $2,579,000. These estimates are of gross losses and loss adjustment expenses before reinsurance recoveries.

The insurance subsidiaries impacted by the hurricanes maintain catastrophe reinsurance to help mitigate the impact of catastrophic events such as hurricanes on the Company’s overall financial condition. However, due to the serialized nature and magnitude of the third quarter storms, coupled with our concentration of business in the Southeastern United States, events such as the three hurricanes incurred in the last quarter will have a material impact on earnings. Under the catastrophe reinsurance agreements, the subsidiaries pay the first $2,000,000 of combined losses per event. Catastrophe reinsurance covers losses from a single event in excess of $2,000,000 and up to $17,500,000 subject to 5% co-insurance. Losses from a single event exceeding $17,500,000 and up to $37,500,000 are 100% covered by reinsurance.

The total cost, net of reinsurance recoveries and including catastrophe reinstatement premium, for all three hurricanes in 2005 totaled $6,099,000 net of tax and reduced earnings for the quarter and year to date by $2.47 per share. Hurricane Dennis did not exceed the catastrophe reinsurance deductible so the net loss from Dennis was $620,000 before tax and $409,000 net of tax. Hurricane Katrina losses net of reinsurance and including catastrophe reinstatement premiums totaled $6,411,000 before tax and $4,231,000 net of tax. Hurricane Rita losses net of reinsurance and including catastrophe reinstatement premiums totaled $2,211,000 before tax and $1,459,000 net of tax.

Loss estimates were derived by an evaluation of Company specific exposures and is the best information available to management at this time. The estimates could be materially affected by, among other things, the number of insureds impacted by the hurricane, the amount and timing of losses actually incurred and reported by insureds, and the amount and timing of reinsurance recoverable collections.