A.M. Best Downgrades Ratings of Medmarc Insurance Group and Its Members

OLDWICK, N.J.--(Business Wire)--
A.M. Best Co. has downgraded the financial strength rating to A- (Excellent)
from A (Excellent) and issuer credit ratings to "a-" from "a" of Medmarc
Insurance Group (Medmarc) and its members, Medmarc Mutual Insurance Company,
Medmarc Casualty Insurance Company (both of Montpelier, VT) and Noetic Specialty
Insurance Company (Chicago, IL). The outlook for all ratings is stable.

Theserating actions reflect Medmarc`s weak underwriting results in 2008 as well
as continued pressure on underwriting results projected for 2009, mixed reserve
development over a 10-year period primarily from discontinued lines and exposure
to multiple losses from certain products within its market niche. The group
operates under competitive market conditions resulting in some rate
deterioration over the past three years, which has affected underwriting
results. Positive rating factors are Medmarc`s excellent risk-adjusted
capitalization, strong operating performance during the 2004-2007 period, solid
market presence providing products liability coverage within the medical
technology and life science products markets and its experienced management
team.

Underwriting results fell in 2008 as separate loss trends affected multiple
policyholders on the group`s core medical technology and life sciences book of
business. Furthermore, its lawyers` liability line experienced some additional
loss experience during 2008, including some development on prior accident year
losses.

Medmarc`s core insurance operations provide products liability and completed
operations liability coverage for manufacturers and distributors of medical
technology and life sciences products. The group`s lawyers` liability coverage
focuses on small law firms in 26 states.

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

The principal methodologies used in determining these ratings, including any
additional methodologies and factors that may have been considered, can be found
at www.ambest.com/ratings/methodology.

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
Marc Liebowitz, 908-439-2200, ext. 5071
marc.liebowitz@ambest.com
or
Gerard Altonji, 908-439-2200, ext. 5626
gerard.altonji@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

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