A.M. Best Comments That PARIS RE's Ratings Are Unchanged Following Announcement of a Capital Management Program

Business Wire, Dec 12, 2007

OLDWICK, N.J. -- A.M. Best Co. has commented that the issuer credit rating (ICR) of "bbb-" of PARIS RE Holdings Limited (PRHL) (Switzerland), the financial strength ratings of A- (Excellent) and the ICRs of "a-" of PRHL's rated operational subsidiaries are unchanged following the announcement of a reduction of share capital of up to USD 400 million conditioned upon the issuance of subordinated debt for an equivalent amount forecasted early 2008.

Despite the leverage effect that will be created by the subordinated debt, A.M. Best expects the risk-adjusted capitalisation to remain strong and supportive of the ratings. A.M. Best will give credit to the subordinated debt for up to 20% of total risk-adjusted capitalisation.

Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com.