A.M. Best Affirms Ratings of Sunderland Marine Mutual Insurance Company Limited

OLDWICK, N.J.--(Business Wire)--
A.M. Best Co. has affirmed the financial strength rating of A- (Excellent) and
issuer credit rating of "a-" of Sunderland Marine Mutual Insurance Company
Limited (SMMI) (United Kingdom). The outlook for both ratings remains stable.

A.M. Best expects SMMI`s risk-adjusted capitalisation to strengthen during 2009,
supported by an increase in retained earnings and a material reduction in
investment risk. In 2008, SMMI`s risk-adjusted capitalisation was adversely
impacted by significant realised and unrealised losses on equities. The company
has subsequently, substantially de-risked its investment portfolio through the
sale of its equity holdings.

A.M. Best expects SMMI to report a pre-tax profit of approximately GBP 3.5
million in 2009 (2008: GBP 10.7 million loss). Rates for SMMI`s specialist lines
of aquaculture, fishing vessels and inland marine have improved, following the
withdrawal of several market participants. This is likely to support a modest
improvement in the underwriting result in 2009, from a small loss of GBP 343,000
in 2008. Additionally, net investment income of approximately GBP 3.5 million
(excluding realised gains or losses) is anticipated. The reallocation of the
company`s investment portfolio to cash and bonds is expected to reduce
prospective performance volatility.

In A.M. Best`s opinion, SMMI maintains a strong business profile in its
specialist markets. SMMI forms long-term relationships with its clients, leading
to a very high business retention rate, in excess of 95% in 2008. The company
has a network of international offices in the United States, Canada, Australia
and New Zealand. SMMI also has subsidiaries in South Africa and the Netherlands,
as well as a reinsurance subsidiary in Bermuda.

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 Co.
Analysts:
Colin Towell, +(44) 20 7626 6264
colin.towell@ambest.com
Stephen Mullan, +(44) 20 7626 6264
stephen.mullan@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