A.M. Best Assigns Ratings to Catlin Indemnity Company

OLDWICK, N.J.--(BUSINESS WIRE)-- A.M. Best Co. has assigned a financial strength rating (FSR) of A (Excellent) and issuer credit rating (ICR) of “a” to Catlin Indemnity Company (CID). The outlook assigned to both ratings is stable.

At the same time, A.M. Best has affirmed the FSR of A (Excellent) and ICRs of “a” of Catlin Insurance Company, Inc.(CICI) (Houston, TX) and Catlin Specialty Insurance Company (CSIC). The outlook for these ratings is stable. All companies are domiciled in Dover, DE, unless otherwise specified.

These ratings are based upon A.M. Best’s group rating methodology and take into consideration CID, CICI and CSIC’s roles and strategic importance to the Catlin group. Furthermore, the ratings consider the implicit and explicit support provided by the Catlin group in the form of quota share reinsurance by Catlin Re Switzerland Ltd, through its Bermuda branch and a guarantee on all third-party reinsurance recoverables. The ratings also reflect the implied commitment provided by the Catlin group in the future to support its continued expansion in the United States.

Beginning in 2010, CSIC and CICI entered into the Catlin U.S. Intercompany Pooling Agreement (Catlin U.S. Pool). The agreement was amended on April 1, 2011 to include CID, which was acquired as a clean shell on January 1, 2011. Collectively, the Catlin U.S. Pool maintains solid capitalization, has produced strong operating results and remains a growth engine for the Catlin group. However, given that the vast majority of the premium and exposure growth has taken place in the casualty lines during soft market conditions, A.M. Best will closely monitor reserve development and overall profitability of the Catlin U.S. Pool.

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”; “Understanding Universal BCAR”; “Catastrophe Risk Management Within the Rating Analysis”; and “Rating Members of Insurance Groups.” Methodologies can be found at www.ambest.com/ratings/methodology.

Founded in 1899, A.M. Best Company is the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

Copyright © 2011 by A.M. Best Company, Inc.ALL RIGHTS RESERVED.

A.M. Best Co.Greg WilliamsSenior Financial Analyst
908-439-2200, ext. 5815
greg.williams@ambest.com
orJoseph RoethelAssistant Vice President
908-439-2200, ext. 5630
joseph.roethel@ambest.com
orCarole LovellPublic Relations Associate
908-439-2200, ext. 5445
carole.lovell@ambest.com
orJim PeavyAssistant Vice President, Public Relations
908-439-2200, ext. 5644
james.peavy@ambest.com

Source: A.M. Best Co.