A.M. Best Downgrades and Withdraws Ratings of Inter-Ocean and Its Subsidiaries

A.M. Best Co. has downgraded the financial strength rating to B++ (Very Good) from A- (Excellent) and the issuer credit rating to "bbb" from "a-" for the reinsurance subsidiaries of Inter-Ocean Holdings Limited (Inter-Ocean) (Bermuda). Additionally, A.M. Best has downgraded the issuer credit rating to "bb" from "bbb-" of Inter-Ocean.

Published on April 6, 2005

Subsequently, Inter-Ocean and its reinsurance subsidiaries ratings will be withdrawn and assigned a rating of NR-4 (Company Request). The latter action is in response to management's request that the operating subsidiaries be removed from A.M. Best's interactive rating process.

The rating downgrade follows Inter-Ocean's announcement that it has voluntarily entered into runoff and has ceased writing new business. As a runoff entity, Inter-Ocean's liabilities will continue to be supported by its 11 shareholders who originally sourced all of the company's business and continue to maintain a strong level of expertise in the global insurance and reinsurance market. One of these shareholders ultimately assumes all the underwriting or timing risk for each transaction undertaken by Inter-Ocean.

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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. CONTACT: A.M. Best Co. Public Relations: Jim Peavy, 908-439-2200, ext. 5644 james.peavy@ambest.com or Rachelle Striegel, 908-439-2200, ext. 5378 rachelle.striegel@ambest.com or Analysts: Robert DeRose, 908-439-2200, ext. 5453 robert.derose@ambest.com or Keith Lennox, 908-439-2200, ext. 5062 keith.lennox@ambest.com http://www.businesswire.com