A.M. Best Affirms Ratings of Brit Insurance Limited

OLDWICK, N.J.--(Business Wire)--
A.M. Best Co. has affirmed the financial strength rating of A (Excellent) and
issuer credit rating (ICR) of "a" of Brit Insurance Limited (BIL) (United
Kingdom). At the same time, A.M Best has affirmed the ICR of "bbb" of Brit
Insurance Holdings PLC (BIH) (United Kingdom) and the ratings of "bbb-"on the
USD 15 million floating rate subordinated notes and "bbb-" on the GBP 135
million fixed rate subordinated notes issued by BIH. The outlook for all ratings
remains stable.

A.M. Best believes BIL will maintain strong risk-adjusted capitalisation in
2009. A modest increase in shareholders` funds is anticipated, supported by
positive retained earnings.

BIL is expected to produce good financial results in 2009, underpinned by solid
underwriting performance (subject to normal catastrophe activity). Performance
is expected to be supported by improving rates, particularly for catastrophe
exposed business, within the global markets and reinsurance business units.
However, despite rate improvements in certain classes of business, A.M. Best
anticipates that the UK division will place upwards pressure on BIL`s loss ratio
in 2009, due to the impact of continuing intense competition on the sector as a
whole. A.M. Best anticipates an increase in the company`s operating expenses in
2009, reflecting a shift in its mix of business to classes where higher
commissions are paid (particularly property business).

BIL benefits from the strong profile of the Brit group in the London Market and
UK regions. The company writes a wide range of personal and commercial lines
business through an expanding network of distribution outlets, which includes
the electronic trading of smaller risks in the UK and local offices in the UK
regional market.

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.

Analysts
A.M. Best Co.
Deniese Imoukhuede, +(44) 20 7626 6264
deniese.imoukhuede@ambest.com
Colin Towell, +(44) 20 7626 6264
colin.towell@ambest.com
or
Public Relations
Jim Peavy, +(1) 908-439-2200, ext. 5644
james.peavy@ambest.com
Rachelle Morrow, +(1) 908-439-2200, ext. 5378
rachelle.morrow@ambest.com

Copyright Business Wire 2009