AM Best


A.M. Best Affirms Ratings of United Insurance Company Limited


CONTACTS:


Scott Mangan

Financial Analyst

(908) 439-2200, ext. 5593

scott.mangan@ambest.com

Peter Dickey

Assistant Vice President

(908) 439-2200, ext. 5053

peter.dickey@ambest.com
Carole Lovell

Public Relations Associate

(908) 439-2200, ext. 5445

carole.lovell@ambest.com

Jim Peavy

Assistant Vice President, Public Relations

(908) 439-2200, ext. 5644

james.peavy@ambest.com

FOR IMMEDIATE RELEASE

OLDWICK, N.J. - JULY 05, 2011 12:00 AM (EDT)
A.M. Best Co. has affirmed the financial strength rating of A- (Excellent) and issuer credit rating of "a-" of United Insurance Company Limited (United) (Barbados). The outlook for both ratings is stable.

The ratings reflect United's favorable capitalization, solid regional market profile and continued positive overall earnings. United's ultimate parent is Neal & Massy Holdings Limited, a large Caribbean-based conglomerate, which is publicly traded on the Trinidad and Tobago and Barbados stock exchanges.

United is a leading insurer in several of its markets, particularly in its home domicile of Barbados, and enjoys excellent brand recognition throughout the region where it operates. United has reported underwriting profits in four of the past five years, which has been complemented by a steady stream of investment revenue. The company also maintains conservative risk management strategies and a comprehensive reinsurance program. This has enabled United to significantly enhance its capitalization, which remains more than adequate for its current rating level.

Partially offsetting these positive rating factors is the increasingly competitive regional markets in which United operates, and its exposure to numerous natural catastrophes that are present throughout the Caribbean. In addition, United's risk profile has changed in recent years through its assumption of European and Asian exposure as part of its reinsurance segment. While this affords United some geographic diversification in its operations, the company is accepting risk in new markets. A.M. Best will continue to closely monitor United's experience with these treaties for any adverse developments.

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"; "Understanding Universal BCAR"; "Natural Catastrophe Stress Test Methodology"; and "Assessing Country Risk." 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.

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AMB# Company Name
086916 CG United Insurance Ltd.