A.M. Best Affirms Ratings of Western Isles Insurance Company Limited.

OLDWICK, N.J. -- A.M. Best Co. has affirmed the financial strength rating of B++ (Very Good) and the issuer credit rating of "bbb" of Western Isles Insurance Company Limited (WIICL) (Isle of Man). The outlook for both ratings remains stable.

A.M. Best believes the company is

likely to maintain a very good risk-adjusted capitalisation after factoring substantial dividends to the parent, the general Russian insurer Soglasie Insurance Company LLC, and a growth in net premiums written of approximately 5% in both 2005 and 2006, mainly from higher insured values. WIICL is highly dependent on retrocession, but this is mitigated by "paid as paid" clauses and retrocession cover from highly rated reinsurers.

Although the limited business diversification and the nature of the risks underwritten could lead to a potential volatility in gross underwriting performance, A.M. Best anticipates that the company's net loss ratio is likely to remain below 10% in 2005 and 2006, even when factoring a major loss event, as the net exposure remains low--less than 1% of the overall limit of indemnity.

A.M. Best expects WIICL to continue to underwrite mainly marine cargo and hull risks, likely to represent more than 98% of its net premium written in 2005. This business emanates from the Interos Company, a Russian conglomerate, of which Soglasie is part.

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A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. For more information, visit A.M. Best's Web site at http://www.ambest.com.