A.M. Best Comments on Ratings of Lloyd's of London Following Its Settlement With Central Fund Insurers

Business Wire, March 14, 2005

OLDWICK, N.J. -- A.M. Best Co. has commented that the financial strength rating of A (Excellent) and issuer credit rating of "a" of Lloyd's of London (United Kingdom), together with the "a-" issuer credit rating of the Society of Lloyd's and the "bbb " debt rating of subordinated notes issued by the Society, all remain unaffected following today's announcement by Lloyd's that a GBP 152 million (USD 293 million) settlement has been reached with the Central Fund insurers. Lloyd's ratings already factor the possible impact of avoidance of the contract by insurers as a worst case scenario. (See related press release dated January 25, 2005.) As such, the GBP 152 million settlement falls within the range of possible outcomes anticipated by A.M. Best.

For Best's Debt Ratings, all other Best's Ratings, an overview of the rating process and rating methodologies, please visit http://www.ambest.com/ratings.> 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.