Exhibit 99.1

[GRAPHIC OMITTED]

NATIONAL ATLANTIC HOLDING CORPORATION


FOR IMMEDIATE RELEASE


            NATIONAL ATLANTIC HOLDINGS CORPORATION TO MERGE WITH
               PALISADES SAFETY AND INSURANCE ASSOCIATION

Freehold, NJ - March 13, 2008--National Atlantic Holdings Corporation (NASDAQ:
NAHC) has announced today that it has entered into a definitive merger agreement
to be acquired by Palisades Safety and Insurance Association, a New Jersey
licensed insurance exchange. Under the terms of the agreement, each outstanding
share of common stock of National Atlantic will be canceled and converted into
the right to receive $6.25 in cash per share.

The Board of Directors of National Atlantic has approved the merger agreement
and recommends that National Atlantic's shareholders approve the merger.

The closing of the merger is expected to occur in the third quarter of 2008. The
merger is subject to the approval of National Atlantic's shareholders, certain
regulatory approvals and the satisfaction or waiver of other closing conditions.
The merger is not subject to a financing condition.

"The acquisition of National Atlantic by Palisades represents an outstanding
opportunity to combine two of the leading New Jersey property-casualty insurers
into a cohesive, highly competitive and efficient organization for our Partner
Agencies, their policyholders and our employees," said James V. Gorman, Chairman
of the National Atlantic Board of Directors and Chief Executive Officer. "The
future prospects of this new organization are very bright and we are pleased to
merge with the excellent companies comprising the Palisades Group," he stated.

Banc of America Securities LLC has acted as the financial advisor to National
Atlantic.

About NAHC:

National Atlantic Holdings Corporation and its subsidiaries provide property and
casualty insurance and insurance-related services to individuals, families and
businesses in the State of New Jersey.



In connection with the proposed transaction, a proxy statement of National
Atlantic and other materials will be filed with SEC. WE URGE INVESTORS TO READ
THE PROXY STATEMENT AND THESE OTHER MATERIALS CAREFULLY WHEN THEY BECOME
AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT NATIONAL
ATLANTIC AND THE PROPOSED TRANSACTION. Investors will be able to obtain free
copies of the proxy statement (when available) as well as other filed documents
containing information about National Atlantic at http://www.sec.gov, the SEC's
free internet site. Free copies of National Atlantic's SEC filings are also
available on National Atlantic's internet site at
http://www.national-atlantic.com. Stockholders of National Atlantic can obtain
more information about the proposed transaction by reviewing the Form 8-K to be
filed by National Atlantic in connection with the announcement of the entry into
the merger agreement, and any other relevant documents filed with the SEC when
they become available.

National Atlantic and its executive officers and directors may be deemed, under
SEC rules, to be participants in the solicitation of proxies from National
Atlantic's stockholders with respect to the proposed merger. Information
regarding the officers and directors of National Atlantic is set forth in
National Atlantic's proxy statements, previously filed with the SEC. More
detailed information regarding the identity of potential participants, and their
direct or indirect interests, by securities holdings or otherwise, will be set
forth in the proxy statement and other materials to be filed with the SEC in
connection with the proposed merger.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

This press release contains forward-looking statements, such as those including
the words "expect," "will," and similar expressions, that involve risks and
uncertainties that could cause actual results and events to differ materially
from those anticipated, including the risk National Atlantic's business and its
relationships with customers, employees or suppliers could suffer due to the
uncertainty relating to the merger; that the merger with Palisades may not be
consummated or may be delayed due to a failure of the conditions to close the
merger to be satisfied or a failure of Palisades to close the transaction; and
such other risk factors as may be included from time to time in the reports of
National Atlantic filed with the SEC and posted in the Investor Relations
section of National Atlantic's web site (http://www.national-atlantic.com.). The
forward looking statements included in this document are made only as of the
date of this document and National Atlantic does not undertake any obligation to
update or revise any forward-looking statements, whether as a result of new
information, future events, or otherwise, except as required by law.

Contact:
National Atlantic Holdings Corporation
Frank Prudente, 732-665-1145
investorrelations@national-atlantic.com