A.M. Best Affirms Ratings of Catlin Group Limited’s U.S. Subsidiaries

  A.M. Best Affirms Ratings of Catlin Group Limited’s U.S. Subsidiaries

Business Wire

OLDWICK, N.J. -- July 25, 2013

A.M. Best Co. has affirmed the financial strength rating of A (Excellent) and
issuer credit ratings of “a” of Catlin Insurance Company, Inc. (CICI)
(Houston, TX), Catlin Specialty Insurance Company (CSIC) and Catlin Indemnity
Company (CIND). CICI, CSIC and CIND participate in the Catlin U.S.
intercompany pooling agreement known as the Catlin U.S. Pool. The outlook for
all ratings is stable. All companies are domiciled in Dover, DE, unless
otherwise specified and are ultimately owned by Catlin Group Limited (CGL)
(Bermuda).

These ratings are based upon CICI, CSIC and CIND’s strategic roles and
importance as U.S. domestic insurers within the Catlin group. In addition, the
ratings factor in the explicit and implicit support provided to the Catlin
group in the form of quota share reinsurance with Catlin Re Switzerland Ltd
(Switzerland) through its Bermuda branch and a guarantee on all third-party
reinsurance recoverables by CGL. The ratings also reflect the implied
commitment provided by the Catlin group to support the Catlin U.S. Pool’s
ongoing expansion efforts in the United States.

The Catlin U.S. Pool maintains a solid risk-adjusted capitalization, produces
profitable operating results and continues to expand its role as a growth
engine for the Catlin group. However, due to the vast exposure and premium
growth that has taken place in the casualty lines through the recent soft
market conditions, A.M. Best continues to closely monitor the reserve
development and overall profitability of the Catlin U.S. Pool.

Positive rating actions are unlikely in the near future for CSIC, CICI and
CIND.

Factors that may lead to negative rating actions include a material
deterioration in the Catlin U.S. Pool’s risk-adjusted capitalization,
significant weakening in its operating results, any negative rating actions
taken on CGL and/or any lessening of support (implied or explicit) provided by
CGL.

The methodology used in determining these ratings is Best’s Credit Rating
Methodology, which provides a comprehensive explanation of A.M. Best’s rating
process and contains the different rating criteria employed in the rating
process. Best’s Credit Rating Methodology can be found at
www.ambest.com/ratings/methodology.

A.M. Best Company is the world's oldest and most authoritative insurance
rating and information source. For more information, visit www.ambest.com.

       Copyright © 2013 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.

Contact:

A.M. Best Co.
Kenneth Monahan, 908-439-2200, ext. 5342
Financial Analyst
kenneth.monahan@ambest.com
or
Joseph Roethel, 908-439-2200, ext. 5630
Assistant Vice President
joseph.roethel@ambest.com
or
Rachelle Morrow, 908-439-2200, ext. 5378
Senior Manager, Public Relations
rachelle.morrow@ambest.com
or
Jim Peavy, 908-439-2200, ext. 5644
Assistant Vice President, Public Relations
james.peavy@ambest.com
 
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