A.M. Best Affirms Ratings of Lloyd's Syndicate 382

Business Wire, Sept 16, 2004

OLDWICK, N.J. -- A.M. Best Co. has affirmed the Best's Syndicate Rating of A (Excellent) and the issuer credit rating (ICR) of "a " of Lloyd's Syndicate 382 (United Kingdom), which is managed by Hardy (Underwriting Agencies) Ltd (United Kingdom). The outlook remains stable. E[acute accent]The ICR of syndicate 382 reflects A.M.

Best's opinion, expressed in the credit market scale, as to the overall ability of the syndicate to meet its senior most obligations, which are insurance policies; hence both ratings (financial strength and ICR) are at the same level. E[acute accent]The syndicate benefits from the financial strength of the Lloyd's market--currently rated A (Excellent)--which underpins the security of all Lloyd's syndicates. The rating is based on A.M. Best's specific syndicate criteria. (See A.M. Best's Rating Methodology for Lloyd's Syndicates at http://www.ambest.com.) E[acute accent]A.M. Best believes syndicate 382 is likely to record excellent profits when the 2002 and 2003 open years of account are closed (16% and 9.5% on capacity, respectively (June 2004 Quarterly Monitoring Report)). The syndicate is likely to continue to be profitable in 2004 as a result of disciplined underwriting and continued good rates for its cargo, financial institutions and specialist aviation business, despite some softening. Syndicate 382 has a long record of strong underwriting performance, having consistently outperformed the Lloyd's market over the last 25 years. It is a niche underwriter with an excellent market profile for the short-tail classes in which it specializes, particularly for aviation rotor wing business. E[acute accent]The syndicate is exposed to the risks associated with writing new classes of business as a result of commencing underwriting financial institutions and political risks in 2004. The syndicate has reduced this risk through comprehensive research prior to accepting business and prudent reinsurance purchasing. E[acute accent]For current Best's ratings, independent data and analysis on more than 3,000 individual property/casualty companies, groups and industry composites, please visit http://www.ambest.com/pc. E[acute accent]A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. For more information, visit A.M. Best's Web site at http://www.ambest.com.