A.M. Best Affirms Ratings of Lloyd's Syndicates 2623 and 623

Business Wire, Dec 7, 2006

OLDWICK, N.J. -- A.M. Best Co. has affirmed the Best's Syndicate Ratings of A (Excellent) and the issuer credit ratings (ICR) of "a " of Lloyd's Syndicate 2623 and Lloyd's Syndicate 623 (United Kingdom). At the same time, A.M. Best has affirmed the ICR of "bbb " of Beazley Group plc (Beazley) (United Kingdom), the non-operating holding company of the Beazley group of companies, and the debt ratings of "bbb-" on the GBP 150 million (USD 297 million) subordinated notes due 2026 and the USD 18 million subordinated notes due 2034 issued by Beazley. The outlook for all ratings remains stable.

Syndicates 2623 and 623 are managed on a combined syndicate basis by Beazley Furlonge Ltd and underwrite business at Lloyd's in parallel. In 2006 capacity was GBP 647.4 million (USD 1,281 million) and GBP 182.6 million (USD 361 million) for 2623 and 623 respectively. Syndicate 2623's capacity is provided 100% by Beazley, while syndicate 623 is supported by third party capital.

The ratings assigned to syndicates 2623 and 623 reflect the financial strength of the Lloyd's market which underpins the security of all Lloyd's syndicates. In addition, A.M. Best believes the syndicates' financial flexibility is enhanced by the support of Beazley, a publicly listed company. For the 2007 underwriting year it is anticipated that capacity for the combined syndicates will increase to GBP 860 million (USD 1,702 million) from GBP 830 million (USD 1,642 million) and that all business will be split 2623 (81%) and 623 (19%), in line with each syndicate's anticipated capacity.

A.M. Best expects strong operating results in 2006, driven by higher underwriting earnings in the absence of exceptional catastrophe activity. On an annually accounted basis, A.M. Best believes the syndicates' combined ratio is likely to be below 90%, reflecting post-hurricane rate increases in key business lines and prior year reserve releases.

In A.M. Best's opinion, syndicates 2623 and 623 have an excellent combined business profile within the London market, leading over 60% of business underwritten. The syndicates also benefit from access to direct U.S. business through the group's US-based managing agent, Beazley USA Services Inc.

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