Castelnau Group Regulatory News (CGL)

19 Oct 2006 16:21

Catlin Group Limited19 October 2006 CATLIN COMMENTS ON A.M. BEST'S DECISION TO REVIEW SUBSIDIARIES' RATINGS HAMILTON, Bermuda - Catlin Group Limited ('CGL': London Stock Exchange), theinternational speciality property/casualty insurer and reinsurer, is surprisedby the decision of A.M. Best Company to place the financial strength and issuercredit ratings of Catlin Insurance Company Limited and other Catlin Groupcompanies under review with negative implications. A.M. Best in its announcement attributed the review to concerns relating toCatlin's consolidated catastrophe exposure and the likely future impact of majorevents on risk-adjusted capitalisation. Catlin believes that such concerns are unwarranted. During the past year, Catlinhas strengthened its financial security and made the Group more resilient in theevent of a major catastrophe. The Group has reduced by one-third its exposure tonatural catastrophe risk compared with a year earlier. Catlin has also furtherdiversified its already balanced underwriting portfolio to increase the amountof non-catastrophe related risk it writes. It has increased the Group's capitalby approximately US$65 million through a placement of new common shares.Catlin's strong first half 2006 underwriting performance produced net income ofUS$147.3 million and a combined ratio of 84.7%. Stephen Catlin, chief executive of Catlin Group Limited, said: "We are puzzled by A.M. Best's decision to place the ratings of Catlin Groupcompanies under review, especially in the light of our performance andachievements during 2006. Catlin is widely regarded as having a conservativeunderwriting philosophy and strong focus on all aspects of risk management. Wewill concentrate our efforts to engage in constructive communication with A.M.Best to alleviate any concerns Best may have regarding Catlin's catastropheexposures." Catlin Insurance Company Ltd (Catlin Bermuda) and Catlin Insurance Company (UK)Limited (Catlin UK) have financial strength ratings of 'A' (Excellent) and issuecredit ratings of 'a' from A.M. Best. Catlin Group Limited has an issuer creditrating of 'bbb' from A.M. Best. Lloyd's Syndicate 2003 (the Catlin Syndicate) has an 'A' (Excellent) Lloyd'sSyndicate Rating, which is not under review by A.M. Best. - ends - For more information contact: Media Relations:James Burcke, Tel: +44 (0)20 7458 5710Head of Communications, London Mobile: +44 (0)7958 767 738 E-mail: james.burcke@catlin.com Liz Morley, Maitland Tel: +44 (0)20 7379 5151 E-mail: emorley@maitland.co.uk Investor Relations:William Spurgin,Head of Investor Relations,London Tel: +44 (0)20 7458 5726 Mobile: +44 (0)7710 314 365 E-mail: william.spurgin@catlin.com Notes to editors: 1. Catlin Group Limited, headquartered in Bermuda, is an international specialist property/casualty insurer and reinsurer writing more than 30 classes of business worldwide. Catlin wrote gross premiums of $1.4 billion in 2005. Catlin shares are traded on the London Stock Exchange (ticker symbol: CGL). More information about Catlin can be found at www.catlin.com. 2. Catlin operates four underwriting platforms: • The Catlin Syndicate at Lloyd's of London (Syndicate 2003), which is one of the largest syndicates at Lloyd's based on 2006 premium capacity of £450 million. It is a recognised leader of numerous classes of specialty insurance and reinsurance. • Catlin Bermuda (Catlin Insurance Company Ltd.), which underwrites property treaty and casualty treaty reinsurance and property and casualty insurance. • Catlin UK (Catlin Insurance Company (UK) Ltd.), which specialises in underwriting commercial non-life insurance for UK clients. It also writes other classes of business written by the Catlin Syndicate. • Catlin US, which encompasses all of Catlin's operations in the United States. Catlin US includes Catlin Insurance Company Inc., an admitted US insurer which will commence operations soon, along with underwriting offices in Atlanta, New York, Houston, New Orleans and San Francisco. Catlin US has also announced plans to establish a non-admitted insurer in the United States. The Catlin Syndicate, Catlin Bermuda and Catlin UK have financial strengthratings of 'A' (Excellent) from A.M. Best Company. Catlin Bermuda and Catlin UKhave insurance financial strength ratings of 'A-' (Strong) from Standard &Poor's; the Catlin Syndicate has a Lloyd's Syndicate Assessment of '4-' (LowDependency) from Standard & Poor's. 3. Catlin also operates offices worldwide which allow Catlin underwriters to work closely with local policyholders and brokers. The offices are located in Canada (Toronto and Calgary), Australia (Sydney), Singapore, Malaysia (Kuala Lumpur), Hong Kong, Germany (Cologne), Belgium (Antwerp) and Guernsey. Catlin UK has regional offices in Glasgow, Leeds, Derby, Birmingham, Watford and Tonbridge. This information is provided by RNS The company news service from the London Stock Exchange