A.M. Best Affirms Ratings of Lloyd's Syndicate 958; Assigns Rating to Omega Insurance Holdings Limited

Business Wire, May 21, 2007

OLDWICK, N.J. -- A.M. Best Co. has affirmed the Best's Syndicate Rating of A (Excellent) and issuer credit rating (ICR) of "a " of Lloyd's Syndicate 958 (United Kingdom), which is managed by Omega Underwriting Agents Limited. The outlook for both ratings remains positive, reflecting the positive outlook on the ICR of Lloyd's of London. A.M. Best has also assigned an ICR of "bbb" to Omega Insurance Holdings Limited (Bermuda), the new ultimate holding company of the Omega group. The outlook on this rating is also positive. Concurrently, A.M. Best has withdrawn the ICR of "bbb" of Omega Underwriting Holdings Ltd following the re-domicile of the group from London to Bermuda.

In addition to the financial strength of the Lloyd's market, which underpins the security of all Lloyd's syndicates, syndicate 958 benefits from financial flexibility provided by the Omega group companies. For the 2007 year of account, syndicate 958 increased its underwriting capacity through a GBP 25 million (USD 50 million) qualifying quota share from Omega Specialty Insurance Limited in order to write a new marine and energy account.

A.M. Best believes syndicate 958 is likely to generate good earnings for the 2007 year of account (subject to catastrophe experience) and a strong return on capacity (after personal expenses) in excess of 12% for the 2006 year of account, reflecting favourable claims experience. Despite the impact of the 2005 U.S. hurricane season on syndicate 958's substantial property portfolio, A.M. Best believes the syndicate is still likely to produce a solid profit in excess of 7% for the year. On an annually accounted basis, the syndicate achieved an excellent combined ratio of 83.5% in 2006 (compared with 100.1% in 2005).

Syndicate 958 has a distinctive business position as a specialist underwriter of small to medium-sized property business, mainly emanating from the United States (almost 50% of gross premiums anticipated in 2007). The syndicate's development of its new marine and energy account follows the re-pricing of this business that occurred due to the 2005 U.S. hurricane season. Although rates are now beginning to soften in this market, A.M. Best believes the new energy account increases the diversity within the syndicate's portfolio and will allow the syndicate to take advantage of current strong, albeit weakening, trading conditions.

For Best's Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings.> Founded in 1899, A.M. Best Company is a full-service credit rating organization dedicated to serving the financial services industries, including the banking and insurance sectors. For more information, visit www.ambest.com.