A.M. Best Affirms Ratings of Aspen Specialty Insurance Company

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 Aspen Specialty Insurance Company (ASIC) (Bismarck, ND), a wholly owned subsidiary of its ultimate parent, Aspen Insurance Holdings Limited (Aspen) [NYSE: AHL]. The outlook for both ratings is stable.

The ratings reflect ASIC’s role and strategic importance to Aspen’s overall strategy and the explicit support provided through substantial quota share reinsurance of ASIC’s net business by its Bermuda-based affiliate, Aspen Insurance Limited (AIL), in addition to the guarantee of all third-party reinsurance recoverables. ASIC’s balance sheet is further protected by an adverse development cover for the company’s outstanding loss reserves as of December 31, 2008. The ratings also reflect the implied support of future parental commitment.

ASIC maintains strong stand-alone capitalization, driven by its low underwriting leverage and negligible investment leverage, and solid liquidity. However, the current competitive market presents a significant challenge to a company still seeking to firmly establish itself in the surplus lines/specialty market.

The principal methodology used in determining these ratings is Best’s Credit Rating Methodology -- Global Life and Non-Life Insurance Edition, which provides a comprehensive explanation of A.M. Best’s rating process and highlights the different rating criteria employed. Additional key criteria utilized include: “Risk Management and the Rating Process for Insurance Companies”; “Understanding BCAR for Property/Casualty Insurers”; and “Rating Members of Insurance Groups.”

Methodologies 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.
David Blades, CPCU
Senior Financial Analyst
908-439-2200, ext. 5422
[email protected]
Joseph Roethel
Assistant Vice President
908-439-2200, ext. 5630
[email protected]
Rachelle Morrow
Senior Manager, Public Relations
908-439-2200, ext. 5378
[email protected]
Jim Peavy
Assistant Vice President, Public Relations
908-439-2200, ext. 5644
[email protected]

Source: A.M. Best Company