A.M. Best Affirms Rating of AmerInst Insurance Group, Ltd.

OLDWICK, N.J. -- A.M. Best Co. has affirmed the financial strength rating of A- (Excellent) of AmerInst Insurance Group, Ltd. (AmerInst) (Hamilton, Bermuda). The outlook for the rating is stable.

This rating reflects AmerInst's conservative reserve position, its niche expertise as a reinsurer of professional liability policies and its adequate capitalization. AmerInst has a history of reserve adequacy and has grown its premium volume over a five-year period while maintaining conservative underwriting leverage. Partially offsetting these positive rating factors are AmerInst's narrow spread of underwriting risk and high investment leverage. Nonetheless, its common stock portfolio has been the source of significant realized gains since 2004.

AmerInst employs a conservative reserving methodology under which it historically books to a higher loss ratio than that of its primary carrier. Recent underwriting results have benefited from management's decision to reduce the degree to which it reserves above the actuarial projection. Furthermore, due to the low severity loss profile of the majority of its insureds, AmerInst's loss experience has not been significantly impacted by the recent accounting scandals in the United States.

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 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.