Best Affirms Glencoe, Subs Ratings; Revises Outlooks to Positive

June 13, 2007

A.M. Best Co. has affirmed the financial strength rating (FSR) of “A-” (Excellent) and issuer credit ratings (ICR) of “a-” for the operating subsidiaries of Bermuda-based Glencoe Group Holdings Ltd. The ratings affirmation also applies to Bermuda’s Glencoe Insurance Ltd., Stonington Insurance Company of Addison, TX, Bermuda’s Lantana Insurance Ltd. and Stonington Lloyds Insurance Company also of Addison.

Best has revised all of its outlooks for the ratings to positive from stable.

“The rating actions reflect Glencoe’s strong capitalization and strong risk management capabilities derived from its strategic role within the RenaissanceRe Holdings Ltd.,” said Best. However the rating agency cited “the group’s significant exposure to southeastern U.S. catastrophe losses, as evidenced in 2004 and 2005,” as a significant offsetting factor. But, Best also indicated that the “group’s affiliation with RenaissanceRe and the monitoring controls it has employed over the program managers mitigates the group’s risk profile.”

Best explained that RenRe’s expertise and focus as a “catastrophe writer provides significant management oversight emphasizing disciplined underwriting, conservative exposure accumulations and optimal capital allocation. As a result “Glencoe utilizes many of the same risk management tools and frameworks developed and utilized by RenaissanceRe, as well as additional proprietary tools developed by Glencoe to better monitor the types of business it writes.

“Additionally, through the aforementioned capital infusions, RenaissanceRe has demonstrated its willingness and ability to utilize its own financial flexibility to support the Glencoe group’s growth opportunities.”

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