A.M. Best Affirms Ratings of Lloyd's Syndicate 510.

OLDWICK, N.J. -- A.M. Best Co. has affirmed the Best's Syndicate Rating of A (Excellent) and the issuer credit rating (ICR) of "a+" of Lloyd's Syndicate 510 (United Kingdom), which is managed by R J Kiln & Co Ltd (United Kingdom). The outlook remains stable.

The ICR of syndicate 510 reflects A.M. Best's opinion, expressed in the credit market scale, as to the overall ability of the syndicate to meet its senior most obligations, which are insurance policies; hence both ratings (financial strength and ICR) are at the same level.

The syndicate benefits from the financial strength of the Lloyd's market--currently rated A (Excellent)--which underpins the security of all Lloyd's syndicates. The rating is based on A.M. Best's specific syndicate criteria. (See A.M. Best's Rating Methodology for Lloyd's Syndicates at http://europe.ambest.com/lloydsmethodology.pdf.)

A.M. Best believes syndicate 510 is likely to record excellent profits when the 2002 and 2003 open years of account are closed (16.7% and 15.3% on capacity, respectively (June 2004 Quarterly Monitoring Report)). The syndicate is likely to remain profitable in 2004, although anticipated losses from the catastrophic events in the second half of the year to date will lead to a profit on capacity somewhat below the level A.M. Best anticipates for the two previous years. The syndicate benefits from a comprehensive reinsurance programme, the main part of which has been in force in excess of 40 years. The syndicate's underwriting discipline, coupled with prudent reinsurance purchasing, has resulted in a track record of outperforming the Lloyd's market over the course of the underwriting cycle. Syndicate 510 writes a predominately short tail account in the following main areas: accident and health, aviation, marine/special risks, property and reinsurance. Much of the account is written from a leadership position (approximately 46% anticipated for 2004), thereby enabling it to determine pricing and terms.

The syndicate also benefits from strong cash flow and adequate financial support from Kiln plc, the ultimate parent of R J Kiln & Co Ltd. However, A.M. Best believes Kiln plc has limited financial resources and may find it difficult to raise significant additional capital to support the syndicate should the need arise.

For a list of A.M. Best's debt ratings, please visit http://www.ambest.com/debt.

For current Best's Ratings, independent data and analysis on more than 3,000 individual property/casualty companies, groups and industry composites, please visit http://www.ambest.com/pc.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.