Best Affirms AmTrust Group Ratings

June 11, 2007

A.M. Best Co. has affirmed the financial strength rating (FSR) of “A-” (Excellent) and the issuer credit rating (ICR) of “a-” of the New York-based AmTrust Group. The ratings also apply to Bermuda-based AmTrust International Insurance, Ltd. (ALL); New Hampshire’s Technology Insurance Company, Inc. (Technology); Rochdale Insurance Company of Rochdale, New York, NY, and Wesco Insurance Company.

In addition Best said it has “has assigned an FSR of A- (Excellent) and an ICR of “a-“to AmTrust International Underwriters Limited (AIUL), – headquartered in Dublin, Ireland – which operates through an intercompany quota share reinsurance arrangement with AII. Best also assigned an ICR of “bbb-” to the parent holding company, AmTrust Financial Services, Inc. (AFSI). The outlook for all ratings is stable.

“The rating reflects the consolidated group’s solid balance sheet strength, sustained strong operating performance and the benefits derived from AFSI including the commitment to maintain sufficient capital, as well as access to additional capital to support the group’s expanding operations,” said Best. “This support was evidenced through infusions of the proceeds of a private placement offering in combination with issuances of trust preferred securities.”

However, Best indicated that the Group’s “aggressive growth in both premium volumes and associated liabilities in recent years, the inherent risk in integrating new businesses acquired through renewal rights on existing books of business and the potential strain that this growth places on the group’s risk-adjusted capitalization and infrastructure,” should be considered as offsetting factors.

Best concluded that “despite these concerns, the outlook is supported by the group’s strong operating results, proven access to capital and commitment to prudent underwriting.”

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