2012-02-01 17:11:57 -

A.M. Best Europe – Rating Services Limited has affirmed the financial strength rating of B++ (Good) and issuer credit rating of “bbb+” of InterGlobal Insurance Company Limited (InterGlobal) (United Kingdom). The outlook for both ratings is stable.

The ratings reflect InterGlobal’s improved and sustainable level of both risk-adjusted capitalisation and financial flexibility through a capital injection from a strong insurance organization.

An offsetting rating factor is the company’s very poor underwriting performance in recent years. Challenging conditions during 2009 and 2010 within the international private medical insurance market together with a select number of poorly performing non-experience rated large accounts in InterGlobal’s portfolio are expected to lead to a peak underwriting loss of around USD 12 million in financial year 2011. However,

management’s actions of pruning loss-making business, portfolio re-pricing and containing premiums expansion during underwriting year 2011 are expected to produce positive technical results in financial years 2012 and 2013. In 2011, a USD 15 million capital injection and a new whole account outward quota share reinsurance agreement served to mitigate the impact of the negative operating performance on risk-adjusted capitalization and boosted the latter to a solid level.

Upward rating actions on InterGlobal are unlikely in the near future.

Negative rating actions could occur if underwriting results remain negative in financial year 2012 and onwards.

The principal methodology used in determining these ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best’s rating process and contains the different rating criteria employed in the rating process. Key criteria utilized include: “Risk Management and the Rating Process for Insurance Companies”; “Understanding BCAR for Property/Casualty Insurers”; and “Rating Members of Insurance Groups”. Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology : cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww .. .


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Best Europe - Rating Services Limited Supplementary Disclosure : cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww .. .


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A.M. Best Europe – Rating Services LimitedAnandi

Nangy-KotechaAssociate Director+(44) 207 397
0271 anandi.nangy-kotecha@ambest.com : mailto:anandi.nangy-kotecha@ambest.com orCarlos
Wong-FupuyAssistant General Manager+(44) 207
397 0287 carlos.wong-fupuy@ambest.com : mailto:carlos.wong-fupuy@ambest.com orRachelle
MorrowSenior Manager, Public Relations+(1) 908

439 2200, ext. 5378 rachelle.morrow@ambest.com : mailto:rachelle.morrow@ambest.com orJim

PeavyAssistant Vice President, Public Relations+(1)

908 439 2200, ext. 5644 james.peavy@ambest.com : mailto:james.peavy@ambest.com