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 the issuer credit rating of "a-" of Sunderland Marine
Mutual Insurance Company Limited (SMMI). The outlook for both ratings
remains stable.

A.M. Best believes that SMMI will maintain excellent risk-adjusted
capitalisation in 2007 and 2008 despite challenges it is likely to
face writing its specialist marine account (expected to constitute
over 80% of gross premium income for the period). In 2006 and 2007 to
date, the company has reduced its underwriting exposure in response to
market weakening for its main marine risks, and A.M. Best anticipates
that this approach will continue into 2008.

As a result of the company's defensive underwriting approach, A.M.
Best believes that SMMI will maintain its strong earnings in 2007. The
company's ability to manage a downturn in the rating environment has
improved in recent years due to increased geographical diversification
in its business sources and adherence to strict pricing policies. As a
result, the company has been able to reduce its exposure to markets
experiencing weaker rates in favour of those that remain more
profitable.

The ratings are also supported by SMMI's strong business profile
in its niche sectors, which comprise fishing vessels, inland/coastal
vessels and aquaculture. The company writes business through its
network of international branches and maintains a significant position
in most of the markets in which it participates. SMMI further enhances
its business profile through the use of its technical expertise and,
in respect of aquaculture business, its in-house risk manager,
Aquaculture Risk Management Company.

For Best's Ratings, an overview of the rating process and rating
methodologies, please visit www.ambest.com/ratings.

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
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 2007