June 13, 2011

A.M. Best Affirms Ratings of AmTrust Group and Its Members

OLDWICK, N.J., Jun 13, 2011 (BUSINESS WIRE) -- A.M. Best Co. has affirmed the financial strength rating (FSR) of A (Excellent) and issuer credit ratings (ICR) of "a" of AmTrust Group (AmTrust) (New York, NY) and its property/casualty members, which operate through an intercompany quota share reinsurance arrangement with AmTrust International Insurance, Ltd. (AII). The outlook for all ratings is stable. (See below for a detailed list of the companies.)

The rating actions reflect AmTrust's strong balance sheet strength, sustained strong operating performance within its niche market segments and the benefits derived from AmTrust Financial Services, Inc. (AFSI), including AFSI's commitment to maintain sufficient capital and to provide access to additional capital should it be needed to support AmTrust's expanding operations. AmTrust has been successful in executing its business plan, which is focused on growth through acquisition of renewal rights offerings and established books of business at appropriate rates, terms and conditions. This allows AmTrust to further benefit from its expandable underwriting platform that generates significant expense savings.

Partially offsetting these positive rating factors are AmTrust's continued growth in both premium volume and associated liabilities in recent years, primarily achieved through renewal rights transactions and the inherent risk associated with expansion into new markets and integrating new business.

Despite these concerns, the outlook recognizes AmTrust's strong sustained operating results within its market segments, its ongoing access to capital and commitment to prudent underwriting through its proven business platform.

The FSR of A (Excellent) and ICR of "a" have been affirmed for the AmTrust Group and its following property/casualty members:

-- AmTrust International Insurance, Ltd.

-- Technology Insurance Company, Inc.

-- Rochdale Insurance Company

-- Wesco Insurance Company

-- Milwaukee Casualty Insurance Company

-- Security National Insurance Company

-- AmTrust Insurance Company of Kansas

-- AmTrust Lloyd's Insurance Company of Texas

-- AmTrust International Underwriters Limited

-- AmTrust Europe Limited

-- Associated Industries Insurance Company, Inc.

The principal methodology used in determining these ratings is Best's Credit Rating Methodology -- Global Life and Non-Life Insurance Edition, which provides a comprehensive explanation of A.M. Best's rating process and highlights the different rating criteria employed. Additional key criteria utilized include: "Risk Management and the Rating Process for Insurance Companies"; "Understanding BCAR for Property/Casualty Insurers"; "Rating Members of Insurance Groups"; "Understanding Universal BCAR"; and "Natural Catastrophe Stress Test Methodology." Methodologies can be found at www.ambest.com/ratings/methodology.

Founded in 1899, A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

Copyright © 2011 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.

SOURCE: A.M. Best Co.

A.M. Best Co.
Brian O'Larte, 908-439-2200, ext. 5138
Senior Financial Analyst
brian.o'larte@ambest.com
or
Rachelle Morrow, 908-439-2200, ext. 5378
Senior Manager, Public Relations
rachelle.morrow@ambest.com
or
Michelle Baurkot, ARe, ARM, 908-439-2200, ext. 5507
Assistant Vice President
michelle.baurkot@ambest.com
or
Jim Peavy, 908-439-2200, ext. 5644
Assistant Vice President, Public Relations
james.peavy@ambest.com


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