A.M. Best Affirms Ratings of BRIT Insurance Limited and Brit Insurance Holdings PLC.

OLDWICK, N.J. -- A.M. Best Co. has affirmed the financial strength rating of A (Excellent) and the issuer credit rating (ICR) of "a" of Brit Insurance Limited (BIL) (United Kingdom). At the same time, A.M. Best has affirmed the ICR of "bbb" of Brit Insurance Holdings PLC (BIH) (United Kingdom), BIL's ultimate parent company. The "bbb-" rating of the USD 15 million floating rate subordinated notes and the "bbb-" rating of the GBP 45.2 million (USD 79.5 million) convertible unsecured loan stock issued by BIH have also been affirmed. The outlook for all ratings remains stable.

BIL's risk-adjusted capitalisation is expected to remain strong at year-end 2005 and 2006, supporting projected increases in net premium income between 2004 and 2006. A.M. Best's evaluation of BIL's probable capitalisation takes account of expected dividends (a minimum of 70% of profit after tax each year) to its parent. A.M. Best believes additional financial flexibility is provided by BIH, which is listed on the London Stock Exchange. Growth in premium income is likely to emanate from the development of BIL's distribution network in the U.K. regions. Future earnings are likely to be favourable, supported by strong underwriting performance and relatively low but stable investment returns. A.M. Best expects a strong combined ratio of approximately 90%-95% in 2005 despite a likely increase in the operating expense ratio. This increase reflects the additional costs of developing its business in the U.K. regions and the related higher brokerage levels.

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A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. For more information, visit A.M. Best's Web site at http://www.ambest.com.