A.M. Best Affirms Ratings of Sunderland Marine Mutual Insurance Company Limited

OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best Co. has affirmed the financial strength rating of A- (Excellent) and the issuer credit rating of “a-” of Sunderland Marine Mutual Insurance Company Limited (SMMI) (United Kingdom). The outlook for both ratings remains stable.

A.M. Best believes that despite weakening, SMMI will maintain excellent risk-adjusted capitalisation in 2008. The company holds a significant proportion of its investment portfolio in equities (26% of total invested assets at year-end 2007), which has resulted in capital losses in current market conditions. However, in A.M. Best’s opinion, SMMI will maintain sufficient surplus to support its higher risk investment strategy.

A.M. Best anticipates that SMMI will produce a loss for the 2008 financial year driven predominantly by losses from the company’s investment portfolio. Whilst an underwriting deficit is expected in 2008 as a result of continued weak rating environment, SMMI’s prudent pricing strategy is likely to maintain the combined ratio at a comparable level to the 103% reported in 2007.

In A.M. Best’s opinion, SMMI continues to benefit from a strong business profile in its niche sectors of fishing vessels, inland/coastal vessels and aquaculture, where competition is less intense. While the company writes a well diversified account by geographic source of business, it is highly concentrated within its specialist lines.

For Best’s Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings.

Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com.