S&P Rates Catlin’s Lloyd’s Syndicate ‘4-‘ (Low Dependency)

May 25, 2006

Standard & Poor’s Ratings Services has assigned its interactive Lloyd’s Syndicate Assessment (LSA) of ‘”-” (low dependency) to U.K.-based Catlin Underwriting Agencies – Syndicate 2003 with a stable outlook.

“The assessment reflects the syndicate’s strong competitive position, above-average long-term earnings, and the stability afforded by its ownership and core status within Catlin Group Ltd.,” stated S&P credit analyst Mark Coleman.

S&P noted: “The syndicate retains key competencies and operational advantages for Catlin Group Ltd. (Catlin), and is expected to contribute approximately 50 percent of premium income in the medium term.

“These strengths are offset, however, by the syndicate’s earnings volatility. (For further information, see “Catlin Insurance Co. Ltd. and Catlin Insurance Co. (U.K.) Ltd. Rated ‘A-‘; Outlook Stable,” published May 23, 2006, on RatingsDirect, Standard & Poor’s Web-based credit analysis system.)”

S&P said the “stable outlook reflects the syndicate’s proven ability to achieve above-average earnings through effective cycle management and its ability to withstand large loss events. As a core member of Catlin, positive assessment actions are contingent on the group’s ability to replicate the strengths of the syndicate and enhance its competitive position and earnings diversity outside of Lloyd’s. Further substantial revision to Catlin’s Katrina estimate could result in negative assessment actions, however.”

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