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 7, 2012

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
(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:

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

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

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

o 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 7, 2012, The National Security Group, Inc. issued a press release announcing its financial results for the three-month and six-month periods ended June 30, 2012. 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

(d) Exhibits.

Exhibit No.	Description of Document
99.1	Press release, dated August 7, 2012, 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.
Date: August 7, 2012	By: /s/ Brian R. McLeod
	Brian R. McLeod Chief Financial Officer

EX-99.1

Exhibit 99.1

661 East Davis Street

Post Office Box 703

Elba, Alabama 36323

PRESS RELEASE

FOR IMMEDIATE RELEASE

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

The National Security Group, Inc. Releases Financial Results

ELBA, ALABAMA (August 7, 2012)…The National Security Group, Inc. (NASDAQ:NSEC) financial results for the three-months and six-months ended June 30, 2012 and 2011, 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,
	2012			2011			2012			2011
Premium Earned	$	12,533,000		$	13,321,000		$	26,029,000		$	28,191,000
Investment Income	1,066,000			1,171,000			2,201,000			2,228,000
Realized Investment Gains	865,000			261,000			1,071,000			1,031,000
Other Income	193,000			256,000			390,000			511,000
Total Revenues	$	14,657,000		$	15,009,000		$	29,691,000		$	31,961,000
Net Loss	$	(7,306,000	)	$	(4,945,000	)	$	(6,775,000	)	$	(3,950,000	)
Net Loss Per Share	$	(2.96	)	$	(2.00	)	$	(2.75	)	$	(1.60	)

On June 20, 2012, The National Security Group, Inc. (the Company) reached a settlement agreement in the Mobile Attic related litigation previously disclosed in its annual and quarterly reports filed with the Securities and Exchange Commission on forms 10-K and 10-Q. The Company and the plaintiff entered into an agreement before the Court to end all outstanding litigation between the parties. The agreement will consist of a settlement in which the Company will pay the plaintiff $13,000,000 over 9 years on terms and conditions to be finalized by the parties in the final definitive agreement. The financial impact of this settlement is reflected in the current year net income figures presented in the table above and discussion below.

For the three-months ended June 30, 2012, the Company had a net loss of $7,306,000, $2.96 per share, compared to a net loss of $4,945,000, $2.00 per share, for the same period last year. The primary factor contributing to the net loss for the three-months ended June 30, 2012 was the settlement of longstanding litigation related to the Company's sale of an investment in Mobile Attic, Inc. The settlement and associated legal fees resulted in a charge to pretax earnings of $12,670,000 in the second quarter and resulted in a net of tax reduction in second quarter net income of $8,362,000. For the three-months ended June 30, 2011, the net loss included a significant increase in policyholder benefits paid resulting from tornado and wind claims related to a series of severe weather events occurring during the month of April 2011 which caused widespread destruction and led to $12,632,000 in gross incurred losses and adjustment expenses. Net of reinsurance recoveries, these events reduced pretax earnings by $6,518,000 and reduced net income by $4,302,000 in the second quarter of 2011.

For the six-months ended June 30, 2012, the Company had a net loss of $6,775,000, $2.75 per share, compared to a net loss of $3,950,000, $1.60 per share, for the same period last year. Litigation settlement and defense cost reduced net income for the first six months of 2012 by $8,751,000, net of tax, resulting in a net loss for the period. The first six months of 2011 were adversely impacted by the previously mentioned tornado and wind related losses which occurred during the month of April.

Year-to-date earned premium revenue was $26,029,000for the six-months endedJune 30, 2012 compared to $28,191,000 for the same period last year. The primary factor contributing to the decline in premium revenue was the decision, in late 2011, to discontinue to automobile line of business due to lack of underwriting profitability.

Shareholders’ equity as of June 30, 2012 was $30,663,000, down $7,352,000 compared to $38,015,000 as of December 31, 2011. Book value per share decreased $2.98 per share for the period ended June 30, 2012 to $12.43 per share compared to $15.41 per share at December 31, 2011. The decline in book value was primarily caused by the net loss of $6,775,000 in the first six months of 2012.

The National Security Group, Inc. (NASDAQ Symbol: NSEC), through its property & casualty and life insurance subsidiaries, offers property, casualty, life, accident and health insurance in twelve states. The Company writes primarily personal lines property coverage including dwelling fire and windstorm, homeowners, and mobile homeowners 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. Additional information about the Company, including additional details of recent financial results, can be found on our website: www.nationalsecuritygroup.com.