Ratings Report: Catlin

November 28, 2007

A.M. Best Co. has affirmed the issuer credit rating (ICR) of “bbb” of Catlin Underwriting (CU) (formerly Wellington Underwriting Plc prior to its acquisition by Catlin Group Limited). Best also affirmed the debt rating of “bbb-” of CU’ s $27 million subordinated floating rate notes, due 2036, and the debt rating of “bbb-” of its €7 million ($10.35 million) subordinated floating rate notes, due 2035. “The outlook for all ratings is stable in line with the outlook of the rating of Catlin Group Limited, CU’s ultimate parent,” said Best.

Standard & Poor’s Ratings Services stated that that the counterparty credit and insurer financial strength ratings and outlook on Bermuda-based Catlin Insurance Co. Ltd. (A-/Positive/–) and U.K.-based Catlin Insurance Co. (U.K.) Ltd. (A-/Positive/–), and its Lloyd’s Syndicate Assessment of ‘4-‘ (“low dependency”) and outlook on U.K.-based Catlin Underwriting Agencies – Syndicate 2003–core entities of Catlin Group Ltd. (Catlin)–are unaffected by the announcement that Catlin expects to incur a $75 million charge in the fourth quarter of 2007 against total subprime mortgage-backed instruments and related CDOs of $84.7 million held at Nov. 27, 2007. S&P said it still expects Catlin to meet its “previous expectations of a combined ratio of 95 percent or below in 2007, and an ROR and ROE of 15 percent after the write-down. Catlin’s residual subprime assets represent 1.5 percent of total investments as at the end of the third quarter of 2007, and today’s disclosure is not indicative of any oversight in Catlin’s risk management process or a less than conservative appetite for credit risk overall.”

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