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Atlas Financial Holdings Earns Demotech “A” (Exceptional) Financial Stability Rating

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Atlas Financial Holdings, Inc. (NASDAQ:AFH) (“Atlas”) announced today that all three of its insurance company subsidiaries, American Country, American Service and Gateway Insurance Companies earned a Financial Stability Rating(R) (FSR(R)) of “A” (Exceptional) from Demotech, Inc.

“We are pleased to have received an FSR(R) of “A” from Demotech,” stated Scott D. Wollney, President & CEO of Atlas, “This rating acknowledges Atlas’ success in the specialty light commercial automobile markets we serve and will allow us to further expand our organic growth in local jurisdictions where this rating level is required.”

Mr. Joseph L. Petrelli, President, Demotech, Inc., stated, “The companies within Atlas Financial Holdings are well-managed, adequately reinsured and focused on their niche. Similarly the management team emphasizes appropriate pricing and realistic loss reserving while concurrently presenting their producers and insureds with products, services and premiums based upon knowledgeable and consistent underwriting practices. We are pleased to include them among the growing number of carriers finalizing their Financial Stability Ratings.”

This level of FSR is assigned to insurers who possess exceptional financial stability related to maintaining positive surplus as regards policyholders, liquidity of invested assets, an acceptable level of financial leverage, reasonable loss and loss adjustment expense reserves (L&LAE) and realistic pricing. FSRs summarize Demotech’s opinion of the financial stability of an insurer regardless of general economic conditions or the phase of the underwriting cycle. FSRs utilize statutory financial data based on insurance accounting principles prescribed or permitted by the National Association of Insurance Commissioners (NAIC).

About Atlas

The primary business of Atlas is commercial automobile insurance in the United States, with a niche market orientation and focus on insurance for the “light” commercial automobile sector including taxi cabs, non-emergency paratransit, limousine/livery and business auto. The business of Atlas is carried on through its insurance subsidiaries American Country Insurance Company, American Service Insurance Company, Inc. and Gateway Insurance Company. Atlas’ insurance subsidiaries have decades of experience with a commitment to always being an industry leader in these specialized areas of insurance.

For more information about Atlas, please visit www.atlas-fin.com.

About Demotech, Inc.

Demotech, Inc. is a financial analysis firm specializing in evaluating the financial stability of regional and specialty insurers. Since 1985, Demotech has served the insurance industry by assigning accurate, reliable and proven Financial Stability Ratings(R) (FSRs) for Property & Casualty insurers and Title underwriters. FSRs are a leading indicator of financial stability, providing an objective baseline of the future solvency of an insurer. Demotech’s philosophy is to review and evaluate insurers based on their area of focus and execution of their business model rather than solely on financial size.

Visit www.demotech.com for more information.

Forward-Looking Statements:

This release includes forward-looking statements regarding Atlas and its insurance subsidiaries and businesses. Such statements are based on the current expectations of the management of each entity. The words “anticipate”, “expect”, “believe”, “may”, “should”, “estimate”, “project”, “outlook”, “forecast” or similar words are used to identify such forward looking information. The forward-looking events and circumstances discussed in this release may not occur and could differ materially as a result of known and unknown risk factors and uncertainties affecting Atlas and its subsidiaries, including risks regarding the insurance industry, economic factors and the equity markets generally and the risk factors discussed in the “Risk Factors” section of the Company’s 2013 Form 10-K. No forward-looking statement can be guaranteed. Except as required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and Atlas and its subsidiaries undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.

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