A.M. Best Assigns Ratings to Liberty Mutual Insurance Europe Limited

Business Editors/Insurance Writers

OLDWICK, N.J.--(BUSINESS WIRE)--December 12, 2008--A.M. Best Co. has assigned a financial strength rating of A (Excellent) and an issuer credit rating of “a” to Liberty Mutual Insurance Europe Limited (LMIE) (United Kingdom), a part of the Liberty International Underwriters division ofLiberty Mutual Group. The outlook for both ratings is stable.

The ratings reflect LMIE’s solid balance sheet strength, strong operating performance within its niche markets, and brand recognition achieved as part of, a strong global franchise led by its U.S. domiciled parent, Liberty Mutual Insurance Company (LMIC) (Boston, MA). The ratings also consider the explicit support provided by its parent.

These positive rating factors are partially offset by earnings fluctuations in earlier years, and the risk associated with achieving adequate risk pricing going forward given soft market conditions. Despite these concerns, the outlook reflects the niche market knowledge, solid profitability and excellent capital position achieved through the retention of profitable earnings.

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.