8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES

EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported):  August 13, 2010

THE NATIONAL SECURITY GROUP, INC.

(Exact name of registrant as specified in its charter)

Delaware	0-18649		63-1020300
(State or other jurisdiction of incorporation)	(Commission File Number)		(IRS Employer Identification No.)
661 East Davis Street
Elba, Alabama 36323			36323
(Address of principal executive offices)			(Zip Code)
Registrant’s telephone number, including area code:		(334) 897-2273
N/A
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 7.01. Regulation FD Disclosure

In accordance with Securities and Exchange Commission Release No. 33-8216, the following information is furnished to the Securities and Exchange Commission pursuant to Item 12, “Disclosure of Results of Operations and Financial Condition.” This information shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

On August 13, 2010, The National Security Group, Inc. issued a press release announcing its financial results for the three months and six months ended June 30, 2010. A copy of this press release is attached as Exhibit 99.1 to this report and is incorporated herein by reference.

Item 9.01. Financial Statements and Exhibits

(c) Exhibits

Exhibit No.	Description of Document
99.1	Press  release  dated August 13, 2010, issued by The National Security Group, Inc.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	The National Security Group, Inc.
Dated:  August 13, 2010	By:  /s/ Brian R. McLeod
	Brian R. McLeod Chief Financial Officer

EX-99.1 CHARTER

                                                                                      Ex. 99.1

The National Security Group, Inc.

661 East Davis Street

Post Office Box 703

Elba, Alabama 36323

PRESS RELEASE

FOR IMMEDIATE RELEASE

The National Security Group, Inc. Releases Second Quarter Earnings

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

Elba, Alabama (August 13, 2010)… Results for the three months and six months ended June 30, 2010 and 2009, based on accounting principles generally accepted in the United States of America, were reported today as follows:

	Three Months Ended June 30					Six Months Ended June 30
	2010		2009			2010		2009
Premium Income	$	15,903,000	$	15,373,000		$	30,941,000	$	30,593,000
Investment Income		1,195,000		1,374,000			2,521,000		2,611,000
Realized Investment Gain (Loss)		689,000		(231,000	)		1,358,000		(230,000	)
Other Income		256,000		192,000			555,000		333,000
Total Revenues	$	18,043,000	$	16,708,000		$	35,375,000	$	33,307,000
Net Income	$	814,000	$	92,000		$	2,708,000	$	1,573,000
Net Income Per Share	$	0.33	$	0.04		$	1.10	$	0.64

The Company had net income of $2,708,000, $1.10 per share, for the six-month period ended June 30, 2010 compared to $1,573,000, $0.64 per share, for the same period last year.  The primary reason for the increase in net income for the six-month period ended June 30, 2010 compared to last year was the year-to-date increase of $1,588,000 in net realized investment gains.  The increase in year-to-date net income was partially offset by a $428,000 increase in policyholder benefits paid or provided.  Year-to-date incurred losses were up in the first half of 2010 in the life segment as well as in the automobile program in the P&C segment compared to the same period last year.

Net income for the quarter ended June 30, 2010 totaled $814,000, $0.33 per share, compared to a net income of $92,000, $0.04 per share, for the same period last year.  The most significant factor contributing to the improvement in second quarter net income was a $920,000 increase in realized investment gains.  In addition, net income was positively impacted by reductions in policyholder benefits paid or provided and policy acquisition costs totaling $253,000 and $205,000, respectively.

Premium revenue for the three-month period ended June 30, 2010 increased $530,000 compared to the same period last year.  The increase in premium revenue for the quarter was directly related to increases in premium production in the homeowners and automobile lines of business in the P&C segment.  The homeowners program experienced a 10.9% increase in premium revenue compared to second quarter of 2009 while the automobile program showed over a 300% increase compared to the same time period.  Premium revenue for the quarter was negatively impacted by declines in the production of traditional life insurance products.

Premium revenue for the six-months ended June 30, 2010, increased $348,000 compared to the same period last year.  As in the quarter, increases in earned premiums in the homeowners and automobile lines of business  in the P&C segment were the primary reasons for the overall increase in premium revenue in the current year compared to the same period last year.  Year-to-date premiums earned for traditional life insurance products were down however the declines were almost completely offset by growth in accident and health lines of business.

Shareholders’ equity as of June 30, 2010 was $43,327,000 compared to $41,168,000, up $2,159,000 compared to December 31, 2009.  Factors contributing to the change in equity were year-to-date net income of $2,708,000, recoveries in market values of fixed maturities and equity securities of $416,000, a net loss on interest rate swaps of $225,000 and dividends paid of $740,000.

The National Security Group, Inc., through its property & casualty and life insurance subsidiaries, offers property, casualty, life, accident and health insurance in thirteen states.  The Company writes primarily personal lines property coverage including dwelling fire and windstorm, homeowners, mobile homeowners and personal non-standard automobile lines of insurance.  The Company also offers life, accident and health, supplemental hospital and cancer insurance products.  The Company was founded in 1947 and is based in Elba, Alabama.

NASDAQ Symbol:  NSEC

Contact:  Brian R. McLeod, Treasurer and Chief Financial Officer

The National Security Group, Inc.

661 East Davis Street

Post Office Box 703

Elba, Alabama 36323

(334) 897-2273