A.M. Best Affirms Ratings of HSB Engineering Insurance Limited

OLDWICK, N.J.--(Business Wire)--
A.M. Best Co. has affirmed the financial strength rating of A+ (Superior) and
the issuer credit rating of "aa-" of HSB Engineering Insurance Limited (HSBEIL)
(United Kingdom). The outlook for both ratings remains stable.

A.M. Best expects HSBEIL to maintain excellent consolidated risk-adjusted
capitalisation during 2009. The rating also factors HSBEIL`s strategic
importance to its parent, The Hartford Steam Boiler Inspection and Insurance
Company (HSB), as the HSB group`s principal source of geographical
diversification and growth outside the United States. In addition, HSBEIL
receives explicit support from the HSB group in the form of reinsurance
protection.

A.M. Best believes HSBEIL will report solid pre-tax earnings in 2009, taking
into account weak market conditions for its core business lines. In 2008, the
company reported a good pre-tax profit of GBP 16.6 million, despite unrealised
foreign exchange losses of approximately GBP 4 million. The company has
consistently recorded low loss ratios, supported by its extensive engineering
expertise.

In A.M. Best`s opinion, HSBEIL has a strong specialist business profile in the
U.K. and Canadian engineering insurance sectors. The company benefits from its
ownership of inspection and consultancy service provider HSB Haughton
Engineering Insurance Services, which plays an active role in HSBEIL`s
underwriting and claims management.

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:
Mathilde Jakobsen, +(44) 20 7626 6264
mathilde.jakobsen@ambest.com
or
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
or
Rachelle Morrow, +1-908-439-2200, ext. 5378
rachelle.morrow@ambest.com

Copyright Business Wire 2009