Orascom Inv Regulatory News (OIH)

15 Jul 2009 07:00



15 July 2009

OMEGA INSURANCE HOLDINGS LIMITED

("Omega" or the "Company")

A.M. Best reaffirms ratings for Omega Specialty & Syndicate 958 

Omega Insurance Holdings Limited ("Omega" or the "Company"), the international insurance and reinsurance group based in Bermuda, announces that A.M. Best has reaffirmed the financial strength rating of Omega Specialty Insurance Company Limited ("Omega Specialty"), Omega's Bermudian subsidiary, at 'A-' (Excellent) and Issuer Credit Rating ("ICR") at 'a-' (Excellent). 

A.M. Best indicated in their statement that Omega Specialty's risk adjusted capitalisation is likely to remain excellent in 2009 and 2010, following Omega's successful capital raising exercise at the end of 2008, and its underwriting performance is likely to be supported by the underwriting discipline and solid risk control infrastructure in place throughout the Omega group. 

Omega further announces that A.M. Best has reaffirmed the financial strength rating of Lloyd's Syndicate 958, which is managed by Omega Underwriting Agents Limited, at 'A' (Excellent) and ICR at 'a+' (Excellent).

In regard to the ratings awarded to Syndicate 958, A.M. Best stated that they reflect the financial flexibility provided by Omega to Syndicate 958 as well as the financial strength of the Lloyd's market as a whole. 

The outlook for all reaffirmed ratings remains stable.

Richard Tolliday, Chief Executive Officer of Omega, said:

"We are pleased that the A.M. Best ratings relating to both Omega Specialty and Syndicate 958 have been reaffirmed. This news comes at a pivotal time for the Company following our recent acquisition of additional capacity on Syndicate 958 and our move to the Official List. The ratings provide confidence to our clients and investors as we continue to develop and grow the business."

Enquiries

Richard Tolliday, Chief Executive Officer, Omega  +1 441 294 6610

Byron Ousey/Michael Turner, Kreab Gavin Anderson +44 (0)20 7554 1400

Notes to Editors

Omega became the holding company of the Omega group of companies (the "Omega Group") on 9 November 2006 when the scheme of arrangement of Omega Underwriting Holdings PLC (the Omega Group's previous holding company and now wholly-owned by Omega) ("OUH") became effective. On the same date the common shares of Omega were admitted to trading on AIM, the admission of OUH's shares to trading on AIM was cancelled and OUH was re-registered as a private limited company.

On 7 July 2009, the common shares of Omega were admitted to the Official List of the London Stock Exchange and to trading on its main market for listed securities. On the same date, the admission of Omega's common shares to trading on AIM was cancelled. 

The Omega Group, through its wholly owned subsidiary, Omega Underwriting Agents Limited, acts as a Lloyd's managing agent for Syndicate 958 and in February 2006 established a new insurance and reinsurance business, Omega Specialty Insurance Company Limited ("Omega Specialty"), based in Bermuda. In September 2006 Omega incorporated a new surplus lines insurer, Omega US Insurance, Inc. ("Omega US Insurance"), in Delaware which is held under a Delaware incorporated intermediate holding company Omega US Holdings, Inc.

Syndicate 958

Syndicate 958's capacity for the 2009 year of account is £249 million. The Syndicate has made an underwriting profit in every closed year of account since its inception in the 1980 year of account. The Syndicate has focused predominantly on short-tail, diversified property orientated insurance and reinsurance with a focus on small to medium sized insureds, with whom the Omega Group has built long-standing track records.

On 13 July 2009, the A.M. Best Company, Inc. reaffirmed the Syndicate's Financial Strength Rating of 'A' (Excellent) and an Issuer Credit Rating of 'a+' (Excellent). 

Omega Specialty

Omega Specialty received its license from the Bermuda Monetary Authority in February 2006 as a Class 3 insurer and has been reclassified as a Class 3B insurer. It was capitalised at US$172 million. Since then, Omega Specialty's premium income has been predominantly derived from its reinsurances of Syndicate 958 and the Omega Group's Lloyd's corporate member, Omega Dedicated, together with its increasing book of third party reinsurances where it seeks to underwrite business of a similar type and composition to be complementary to that underwritten by Syndicate 958.

On 13 July 2009, the A.M. Best Company, Inc. reaffirmed Omega Specialty's Financial Strength Rating of 'A-' (Excellent).

Omega US Insurance

Omega US Insurance is an insurance company licensed in the state of Delaware and underwrites on a surplus lines basis in other US States. Omega US Insurance is currently eligible to write surplus lines business in 41 US jurisdictions and will underwrite in all other states once it has been granted the requisite eligibility in each US State. It was capitalised at US$50 million from the net proceeds of a share placing by OUH in October 2006.

On 3 December 2007, Omega US Insurance received a Financial Strength Rating from A.M. Best Company, Inc. of 'A-' (Excellent). The rating was reaffirmed on 3 February 2009.