A.M. Best Affirms Ratings of NYMAGIC, INC. and Its Subsidiaries.

OLDWICK, N.J. -- A.M. Best Co. has affirmed the financial strength rating (FSR) of A (Excellent) and issuer credit ratings (ICR) of "a" of New York Marine Group and its members, New York Marine And General Insurance Company (NY Marine) (New York, NY) and Gotham Insurance Company (Gotham) (New York,

NY). A.M. Best also has affirmed FSR of A- (Excellent) and ICR of "a-" of Southwest Marine and General Insurance Company (Southwest) (Phoenix, AZ), which was formed in 2006 to write the group's nationwide book of small surety accounts and to write excess and surplus lines in New York State.

Concurrently, A.M. Best has affirmed the ICR of "bbb" and debt rating of "bbb" of the $100 million, 6.5%, senior unsecured bonds due 2014 issued by NY Marine's publicly-traded, holding company, NYMAGIC, INC. (New York, NY) (NYSE: NYM). The outlook for all ratings is stable.

The ratings reflect NY Marine's solid capitalization, derived from historically conservative underwriting leverage, strong history of operating earnings and proven ability to quickly adapt to changing market conditions.

Partially offsetting these positive rating factors is NY Marine's dependence on reinsurance and limited capital growth over the years, hindered by dividend payments that have represented a significant portion of earnings. Furthermore, the group has a large portfolio of Alt-A mortgaged-backed securities that have lost up to 30% of their market value through the end of first quarter 2008. Nonetheless, the group holds a super senior position within these securities, significantly lowering their risk of default, and they have maintained their high ratings. As such, the majority of the risk presented by these securities is their illiquidity, although the group plans to hold these securities to maturity.

For Best's Debt Ratings, all other 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.