A.M. Best Upgrades Rating of Lloyd's Syndicate 570

Business Wire, March 16, 2006

OLDWICK, N.J. -- A.M. Best Co. has affirmed the financial strength rating of A (Excellent) and upgraded the issuer credit rating (ICR) to "a " from "a" of Lloyd's Syndicate 570 (United Kingdom), which is managed by Atrium Underwriters Limited (AUL). The outlook for both ratings is stable. For A.M. Best's rating of Atrium Underwriting Plc, the ultimate parent of AUL, please see today's press release on Lloyd's Syndicate 609.

The rating of syndicate 570 reflects support provided by the financial strength of the Lloyd's market, which underpins the security of all Lloyd's syndicates. The ICR upgrade also reflects an enhanced return on capacity anticipated for the 2006 year of account, out-performance of A.M. Best's expectations for the 2003 year of account and improved post-hurricane forecasts for the 2004 and 2005 years of account.

A.M. Best believes syndicate 570's capacity utilisation is likely to increase in 2006 to approximately 85%-90% (up from 80% anticipated in 2005) as a result of improving market conditions and reflecting AUL's decision to maintain the syndicate's capacity at GBP 150 million (USD 261 million).

A.M. Best expects stable excellent returns from syndicate 570 in the long term. In 2006, A.M. Best believes strong performance is likely, with the syndicate benefiting from better than expected market conditions. In A.M. Best's opinion, syndicate 570 is likely to report a strong result for the 2005 year of account of approximately 5% of capacity, despite the high incidence of catastrophes. (The US hurricanes are likely to account for a net loss of 7% of capacity for the year.) Furthermore, A.M. Best believes it is likely the syndicate will produce an excellent return on capacity of between 10-15% in 2004, again despite factoring losses of approximately 8% of capacity from major catastrophes. Syndicate 570 produced an excellent operating profit of 18% of capacity for the 2003 year of account, above the 10-15% anticipated by A.M. Best, with the syndicate benefiting from a relative absence of significant catastrophe losses.

The syndicate's rating is also supported by its relatively low risk profile. Syndicate 570 is a well diversified commercial lines insurer, specialising in high-volume, small limit commercial business.

For 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.