A.M. Best Affirms Ratings of W.R. Berkley Insurance (Europe), Limited

OLDWICK, N.J.--(Business Wire)--
A.M. Best Co. has affirmed the financial strength rating of A (Excellent) and
the issuer credit rating (ICR) of "a" of W.R. Berkley Insurance (Europe),
Limited (WRB Europe) (United Kingdom). The outlook on both ratings remains
stable.

A.M. Best expects WRB Europe to maintain strong stand-alone risk-adjusted
capitalisation in 2009, supported by the full retention of earnings. The ratings
also reflect the implicit support provided by the company`s ultimate parent,
W.R. Berkley Corporation (WRB) (Greenwich, CT), which maintains excellent
risk-adjusted capitalisation. In A.M. Best`s opinion, WRB Europe remains
strategically important to its parent company as its source of geographic
diversification and growth outside the U.S.

A.M. Best anticipates deterioration in WRB Europe`s combined ratio in 2009 to
approximately 100% (2008: 97.8%), owing to further moderate rate weakening in
the company`s core book of UK professional indemnity business. Prior year gross
reserve releases are expected to be lower than the GBP 5 million reported in
2008. Investment earnings are likely to be modest, reflecting the company`s
conservative portfolio and prevailing market conditions.

WRB Europe has a solid business profile in the UK and London market as a
specialist underwriter of small to medium-sized professional indemnity business.
The diversification of the company`s portfolio is expected to improve in 2009
following the formation of a Norwegian branch office underwriting marine
business. However, A.M. Best believes the diversification benefit is partly
offset by the execution risk inherent in writing a new class of business and the
impact of strong premium growth on risk-adjusted capitalisation in 2010.

For Best`s Credit 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 Company
Analysts
Stephen Mullan, +(44) 20 7626 6264
stephen.mullan@ambest.com
or
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
or
Rachelle Morrow, +(1) 908 439 2200, ext. 5378
rachelle.morrow@ambest.com

Copyright Business Wire 2009