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A.M. Best Revises Outlook of Exporters Insurance Company Ltd. CONTACTS:
FOR IMMEDIATE RELEASE OLDWICK, NEW JERSEY, U.S.A., Oct. 20, 2008—A.M. Best Co. has revised the outlook to stable from positive and affirmed the financial strength rating (FSR) of A- (Excellent) and issuer credit rating (ICR) of “a-” of Exporters Insurance Company Ltd. (Exporters) (Bermuda). A.M. Best also has affirmed the FSR of A- (Excellent) and ICR of “a-” of its separately rated subsidiary, Exporters Insurance Company (Europe) Ltd. (Exporters Insurance) (United Kingdom). The outlook for these ratings is stable. The ratings of Exporters and Exporters Insurance reflect their superior risk-adjusted capitalization, proven performance through market cycles and continued growth in capital and surplus. The ratings also recognize Exporters’ conservative approach to investment management and the company’s strong market position among its membership. Partially offsetting these positive factors are the potential exposure to significant net losses due to major company-specific and global economic events. One of these downturns was experienced in 2002 and 2001, which was the result of financial difficulties in an emerging market country coupled with the contraction within the telecommunications industry. The recovery in Exporters’ results after 2003 is due to loss activity returning to historical levels after the settlement of several large claims resulting from exposures in Argentina and, to a lesser extent, other locales. Capital and surplus increases primarily are due to the retention of net income coupled with additional capital raised from new members, which partially offset the redemption of some participants’ underutilized capital contributions. A.M. Best remains the leading rating agency of captive insurers rating a wide variety of more than 200 captives in the United States and throughout the world. For current Best’s Ratings and independent data on the captive and alternative insurance market, please visit www.ambest.com/captive. 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, visitwww.ambest.com. ### |
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