A.M. Best Assigns Ratings to OJSC Transsiberian Reinsurance Corporation.

OLDWICK, N.J. -- A.M. Best Co. has assigned a financial strength rating of C++ (Marginal) and an issuer credit rating (ICR) of "b+" to OJSC Transsiberian Reinsurance Corporation (Russia) (Transsib Re). The outlook for both ratings is stable.

The ratings reflect Transsib Re's position as a medium-sized company in the small but fast developing Russian reinsurance market and the company's excellent financial performance. The main offsetting factor is the insufficient level of financial strength to support continued business expansion according to A.M. Best's risk-based capital model.

Transsib Re is a medium-sized company in the context of the domestic Russian reinsurance market, with gross written premiums of around RUB 1.1 billion (USD 38 million) in 2005. With a historical net retention ratio of around 30%, A.M. Best believes that Transsib Re's potential for net premium growth during the next three years (at a rate of approximately 15% - 20% per annum - slightly faster than the domestic market) is likely to be constrained by significant capital pressures.

Transsib Re's technical performance has historically been excellent, with combined ratios of around 90%. A.M. Best believes that despite these positive underwriting results and a comprehensive reinsurance programme, the net exposures in respect of natural catastrophes are material enough to impact significantly Transsib Re's capital position.

For Best's Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings.

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 www.ambest.com.