A.M. Best Comments on Sirius International Insurance Corporation's Acquisition of Tryg-Baltica Insurance, International Insurance Company A/S.

OLDWICK, N.J. -- A.M. Best Co. has commented that the financial strength rating of A (Excellent) of Sirius International Insurance Corporation (Sirius International) (Sweden) is unaffected following today's announcement that it has entered into an agreement to acquire Tryg-Baltica Insurance, International Insurance Company A/S (TBI) (Denmark).

Sirius is acquiring TBI at a discount to its net asset value and is likely to realize some economic benefit from the transaction; however, given the modest size of TBI (USD 177 million total assets in 2003), A.M. Best does not expect the acquisition to materially enhance Sirius' earnings profile or strategic positioning in the Nordic region. Post-acquisition, Sirius intends to place TBI into run off and will selectively renew the in-force portfolio on its own paper. Sirius will assume no exposure to the run-off business of TBI's former subsidiary in the United Kingdom, Chevanstell Ltd., which will remain within the Tryg Vesta Group following the transaction.

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