A.M. Best Affirms Ratings of Aurigen Reinsurance Company and Aurigen Reinsurance Limited

OLDWICK, N.J.--(Business Wire)--
A.M. Best Co. has affirmed the financial strength rating (FSR) of A- (Excellent)
and issuer credit ratings (ICR) of "a-" of Aurigen Reinsurance Company (Toronto,
ON) and Aurigen Reinsurance Limited (Hamilton, Bermuda) (collectively known as
Aurigen). The outlook for all ratings is stable.

The ratings of Aurigen are based upon the start-up nature of the operation,
which is focused on the Canadian life reinsurance marketplace and adequate
capitalization, offset by a first-year operating loss.

Over the past year, the Canadian life reinsurance market has experienced some
volatility in conjunction with the economic environment. Despite the global
economic challenges, Aurigen successfully completed its first significant
reinsurance transaction and has indicated that it is gaining traction in
concluding additional transactions. It recent years, the Canadian reinsurance
market has become increasingly concentrated. While A.M. Best continues to view
Aurigen`s business plan as favorable, it may be difficult for Aurigen to foster
new relationships in an established market.

A.M. Best remains concerned with the uncertainties surrounding the successful
execution of Aurigen`s business plan, as well as its lack of operating history.
In addition, A.M. Best believes Aurigen may potentially need to reach out to the
capital markets or have an initial public offering to raise capital if growth
outpaces projected levels.

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
Marc Steinberg, 908-439-2200, ext. 5225
marc.steinberg@ambest.com
or
William Pargeans, 908-439-2200, ext. 5359
william.pargeans@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

Copyright Business Wire 2009