S&P Rates Gard P&I (Bermuda) ‘A+’; Outlook Stable

May 16, 2007

Standard & Poor’s Ratings Services has assigned its “A+” long-term counterparty credit and insurer financial strength ratings to Bermuda-based marine insurer Gard P&I (Bermuda) Ltd. with a stable outlook.

“The ratings reflect the company’s core status to the Gard group, of which the principal operating entities include Norway-based mutual protection and indemnity association Assuranceforeningen Gard – gjensidig – and Bermuda-based Gard Marine & Energy Ltd.,” explained S&P credit analyst Peter McClean.

Gard P&I Bermuda is a sister mutual protection and indemnity association to Assuranceforeningen Gard – gjensidig -, which S&P also rates as “A+” with a stable outlook. Under a reinsurance agreement, the Bermudan association assumes 85 percent of the risks of Gard P&I, whose members are the same as for the Bermudan association. Under a second reinsurance agreement, Gard P&I assumes 15 percent of the risks incurred in relation to members directly entered into the Bermudan association.

S&P noted that the “company’s integral role within the Gard group is reinforced by its 84.2 percent ownership of Gard Marine & Energy Ltd. (A+/Stable/–), the group’s marine hull and energy insurer. “

The stable outlook on Gard P&I Bermuda reflects the fact that S&P also has assigned the same outlook to the Gard Group’s other core operating entities. It also reflects S&P’s “expectation that Gard P&I Bermuda will continue to have an integral role within the Gard group structure.”

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