A.M. Best Affirms Ratings of Ironshore Insurance Ltd. and Ironshore Reinsurance Ltd.;...

A.M. Best Affirms Ratings of Ironshore Insurance Ltd. and Ironshore Reinsurance Ltd.; Assigns Ratings to U.S. Subsidiaries

OLDWICK, N.J.--(Business Wire)--
A.M. Best Co. has affirmed the financial strength rating (FSR) of
A- (Excellent) and issuer credit ratings (ICR) of "a-" of Ironshore
Insurance Ltd. (Ironshore) and Ironshore Reinsurance Ltd (both of
Bermuda). Concurrently, A.M. Best has affirmed the ICR of "bbb-" of
Ironshore's holding company, Ironshore Inc. (Cayman Islands). The
outlook for these ratings is stable.

A.M. Best also has assigned an FSR of A- (Excellent) and ICRs of
"a-" to Ironshore Indemnity Inc. (III) (Minneapolis, MN) and Ironshore
Specialty Insurance Company (ISIC) (Phoenix, AZ). The outlook assigned
to these ratings is stable.

The rating affirmations are based on Ironshore's solid operating
results and excellent capitalization during its first year of
operations. Management continues to enhance infrastructure along with
systems and controls to accommodate current and future growth. During
its first year, Ironshore focused on property coverage and expanded
into professional liability lines as included in its original plan.
The company, however, was challenged by less than anticipated premium
volume due to the current soft market along with some unexpected
losses in segments of its investment portfolio. Furthermore, Ironshore
is still establishing a formal enterprise risk management framework
that will address all aspects of its risk exposures. A.M. Best will
closely monitor Ironshore's progress in this phase of its development.

The ratings of the two new U.S. affiliates, III and ISIC, reflect
their expected solid capitalization, reasonable business plan and
experienced management teams. III will provide Ironshore with a U.S.
presence in the D&O, E&O and professional indemnity markets, while
ISIC was established as an excess and surplus lines writer focusing on
contractor, artisan, hospital and long-term care professional
liability through its IronBuilt and IronHealth business segments.

In addition to being susceptible to low frequency high severity
events, A.M. Best anticipates that Ironshore will continue to be
challenged by increased competition from both established companies
and start-ups seeking market opportunities. Furthermore, the ability
of Ironshore to effectively build and retain market acceptance will
only be proven over time. Accordingly, A.M. Best will continue to
closely monitor the quarterly performance of Ironshore against its
stated business plan, and any material negative deviations in terms of
management, earnings, capitalization or risk profile could result in
downward pressure on the ratings.

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

Founded in 1899, A.M. Best Company is a global full-service credit
rating organization dedicated to serving the financial and health care
service industries, including insurance companies, banks, hospitals
and health care system providers. For more information, visit
www.ambest.com.

A.M. Best Co.
Analysts:
Peter Dickey, 908-439-2200, ext. 5053
peter.dickey@ambest.com
or
Robert DeRose, 908-439-2200, ext. 5453
robert.derose@ambest.com
or
Public Relations:
Jim Peavy, 908-439-2200, ext. 5644
james.peavy@ambest.com
or
Rachelle Morrow, 908-439-2200, ext. 5378
rachelle.morrow@ambest.com

Copyright Business Wire 2008