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A.M. Best Places Ratings of Exporters Insurance Company
(Europe) Ltd. Under CONTACTS:
FOR IMMEDIATE RELEASE OLDWICK, NEW JERSEY, U.S.A., Nov. 14, 2008—A.M. Best Co. has placed the financial strength rating of A- (Excellent) and issuer credit rating of “a-”of Exporters Insurance Company (Europe) Ltd. (Exporters Europe) (United Kingdom) under review with negative implications. A.M. Best also has affirmed the ratings. The ratings reflect Exporters Europe’s adequate risk-adjusted capitalization and explicit and implicit support provided by its affiliate company, Exporters Insurance Company Ltd (Bermuda). The ratings recognize Exporters Europe’s conservative approach to investment management and its strong market position among its growing membership. A.M. Best expects Exporters Europe’s strong management to pilot the company effectively through global economic expansions and contractions. Partially offsetting these positive factors are the potential exposure to significant net losses due to major localized or global economic downturns. Also, premium rates for select credit and political risk insurance coverages in certain parts of the world have been constrained under competitive pressures. Rate concerns are mitigated by the recent firming of market rates and improvements in insurance policy terms and conditions. Exporters Europe’s ratings have been placed under review with negative implications due to the announcement that the company has entered into an agreement with QBE Holdings Inc. (QBE) for it to acquire Exporters Europe’s core underwriting and risk management group and to administer the run off of Exporters Europe’s existing portfolio. The transaction is expected to formally close on November 21, 2008. Exporters Europe has now ceased underwriting any new or renewal business. All risks assumed by Exporters Europe prior to closing are expected to stay on Exporters Europe’s paper. The ratings and their under review status will be reviewed subsequent to the closing of the transaction between Exporters Europe and QBE and after the run-off status and projections can be evaluated. 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, visit www.ambest.com.
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