AM Best


A.M. Best Affirms Ratings of Lloyd's Syndicate 1084 and Chaucer Holdings Plc


CONTACTS:

Analyst(s)

Colin Towell

+(44) 20 7626 6264

colin.towell@ambest.com

Rima Shah

+(44) 20 7626 6264

rima.shah@ambest.com
Public Relations

Jim Peavy

+(1) 908 439 2200, ext. 5644

james.peavy@ambest.com

Rachelle Striegel

+(1) 908 439 2200, ext. 5378

rachelle.striegel@ambest.com

FOR IMMEDIATE RELEASE

OLDWICK, N.J. - AUGUST 09, 2006 12:00 AM (EDT)
A.M. Best Co. has affirmed the Best's Syndicate Rating of A (Excellent) and the issuer credit rating (ICR) of "a" of Lloyd's Syndicate 1084 (United Kingdom). At the same time, A.M. Best has affirmed the ICR of "bbb-" of Chaucer Holdings Plc, the ultimate parent company of the syndicate's managing agency, Chaucer Syndicates Limited (CSL), and the debt rating of "bb+" on the GBP 20 million subordinated convertible 8.5% 2008 loan stock of Chaucer Holdings Plc. The outlook for all ratings remains stable.

The syndicate benefits from the financial strength of the Lloyd's market, which underpins the security of all Lloyd's syndicates. The ratings are based on A.M. Best's specific syndicate criteria.

The ratings also reflect the syndicate's strong prospective operating performance. A.M. Best anticipates adequate performance at near break-even when the 2005 year of account is closed, reflecting substantial losses from the U.S. hurricanes. However, a return to strong profitability is anticipated in 2006 (15% return on capacity anticipated subject to full year catastrophe experience), reflecting improvement in rates for several of the syndicate's specialist lines of business. The syndicate is likely to particularly benefit from market firming for U.S. property, marine excess of loss and marine energy business.

A.M. Best believes that syndicate 1084 has an excellent business profile within Lloyd's, supported by its leadership position on a substantial proportion of its business (anticipated to be 45% of 2006 gross premium income). CSL is the third-largest managing agent within Lloyd's (as measured by its managed capacity of GBP 919 million [USD 1,700 million] in 2006) and underwrites a well diversified international account.

For Best's Debt Ratings, all other Best's Ratings, an overview of the rating process and rating methodologies, please visit Best's Rating Center.

A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source.

Related Companies

For information about each company, including the Best's Credit Reports, group members (where applicable) and news stories, click on the company name. An additional purchase may be required.