A.M. Best Comments on RenaissanceRe's CEO Receipt of a Wells Notice

Business Wire, July 26, 2005

OLDWICK, N.J. -- A.M. Best Co. commented today that RenaissanceRe Holdings Ltd. and its affiliates' (RenaissanceRe) various financial strength, issuer credit and debt ratings are unchanged with a stable outlook after the group's Chief Executive Officer, James Stanard, received a "Wells Notice" from the Securities and Exchange Commission. This notice relates to the SEC's ongoing investigation into RenaissanceRe's restatement of prior year financial statements and indicates that the SEC intends to recommend civil enforcement action against Mr. Stanard for allegedly breaking federal securities laws. A senior vice president of RenaissanceRe, Michael Cash, who previously resigned from the group after refusing to cooperate with the SEC, has also received a "Wells Notice."

At this time, A.M. Best believes that RenaissanceRe has a strong and seasoned management team capable of maintaining the group's leading market position in the event that Mr. Stanard should no longer remain in his current position. Additionally, A.M. Best has noted that RenaissanceRe continues to maintain a very strong capital and liquidity position relative to its ratings, which enables it to withstand the recent negative impact to the group's financial flexibility as a result of the decline in its stock price following the "Wells Notice" for Mr. Stanard. A.M. Best also notes that RenaissanceRe's system of internal controls has been strengthened and opined on by its auditors as a result of the internal study completed this past March. As such, the circumstances leading to the previously noted accounting irregularities should not be repeated.

A.M. Best continues to actively monitor this situation and may change its current position if the SEC investigation into RenaissanceRe expands further than Messrs Stanard and Cash.

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.