A.M. Best Upgrades Ratings of Amlin Bermuda Limited.

OLDWICK, N.J. -- A.M. Best Co. has upgraded the financial strength rating to A (Excellent) from A- (Excellent) and the issuer credit rating (ICR) to "a" from "a-" of Amlin Bermuda Limited (ABL) (Bermuda). The outlook for both ratings is stable.

The rating upgrades

reflect ABL's conservative implementation of its business plan and A.M. Best's expectation that ABL will maintain strong risk-adjusted capitalisation. In addition, the upgrades reflect the excellent performance of Lloyd's Syndicate 2001 (which is managed by Amlin Underwriting Limited), as over 90% of ABL's business comprises either reinsurance of syndicate 2001's account or additional lines on existing business already written by the syndicate. ABL's prudent approach to underwriting and exposure monitoring supports the absence of a reinsurance programme in 2007-08. A.M. Best continues to believe that the spread of business written by the company in its target sectors effectively limits major loss exposures to a manageable level.

ABL is likely to achieve an excellent profit in the region of USD 220 million in 2007, up from USD 180 million in 2006, equating to a strong return on capital employed of over 15% despite lower than anticipated premium volumes. The company's loss ratio is expected to be low at approximately 50%, supported by excellent performance on business assumed from syndicate 2001. A.M. Best has factored into its analysis some deterioration in the loss ratio for 2008, reflecting a softening rating environment.

ABL continues to leverage the strong existing relationships between its management team and broker distribution channels, established through the group's syndicate. A.M. Best believes that ABL writes a diversified account both in terms of territory and the classes of business written, supported by its links to syndicate 2001. The company's approach to underwriting property catastrophe business remains prudent, with its focus on regional business that is subject to zonal exposure caps based on total insured values at risk. Nationwide accounts and retrocession business are avoided.

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.