Best Affirms Misr Ratings; Outlook Revised to Negative

March 6, 2007

A.M. Best Co. has affirmed the financial strength rating of “A-” (Excellent) and the issuer credit rating “a-” of Egypt’s Misr Insurance Company. However, Best also revised its ratings outlook to negative from stable.

“The ratings reflect Misr’s excellent risk-adjusted capitalization, weakening non-life technical results (driven by its motor compulsory account) and its strong business profile in the Egyptian insurance market,” said Best.

The rating agency said that the negative outlook reflects its “view that although Misr’s risk-adjusted capitalization is supportive of its current rating, prospectively this is highly reliant on a very strong anticipated investment income during 2007.”

Best said it “believes this is likely to be required in order to compensate for anticipated non-life technical losses during the year due mainly to reserve strengthening within its motor compulsory account.”

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