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A.M. Best Affirms Ratings of Endurance Specialty Insurance Ltd. and Its Affiliates

^{Published on 2009-12-21 10:20:25 - Market Wire}
 

OLDWICK, N.J.--([ BUSINESS WIRE ])--A.M. Best Co. has affirmed the financial strength rating (FSR) of A (Excellent) and issuer credit ratings (ICR) of "a" of Endurance Specialty Insurance Ltd. (Endurance) and its affiliates. Concurrently, A.M. Best has affirmed the ICR of "bbb" and debt ratings of the publicly traded parent, Endurance Specialty Holdings, Ltd (NYSE: ENH). A.M. Best also has affirmed the indicative ratings of "bb+" of Endurance Holdings Capital Trust I & II.The outlook for all ratings is stable. The above companies are domiciled in Bermuda. (See below for a detailed list of the companies and ratings.)

The ratings reflect Endurance's solid level of risk-adjusted capitalization, favorable historical operating performance and its reasonably diversified business profile. The ratings also consider the financial flexibility of Endurance and its affiliates due to their parent and their demonstrated ability of managing capital through various market cycles. Moreover, the ratings reflect the group's solid enterprise risk management framework, which supports its dynamic market focus and ability to quickly recognize and manage market opportunities in a prudent fashion.

Partially offsetting these positive rating factors is Endurance's exposure to large severe events and the potential for events in excess of modeled expectations. Further offsetting the company's strengths are the competitive conditions in the insurance and reinsurance markets and the challenges associated with managing the group's risks given the volatility of economic conditions. The outlook reflects A.M. Best's expectation that operating performance and risk-adjusted capitalization will continue to support the ratings at the current level given the targeted lines of business, conservative operating strategies and solid risk management framework.

The FSR of A (Excellent) and ICRs of "a" have been affirmed for Endurance Specialty Insurance Ltd. and its following affiliates:

• Endurance Reinsurance Corporation of America
• Endurance Worldwide Insurance Limited
• Endurance American Specialty Insurance Company
• Endurance American Insurance Company
• Endurance Risk Solutions Assurance Company
• American Agri-Business Insurance Company

The ICR of "bbb" has been affirmed for Endurance Specialty Holdings, Ltd.

The following debt ratings have been affirmed:

Endurance Specialty Holdings, Ltd—
-- "bbb" on $250 million 7.0% senior unsecured notes, due 2034
-- "bbb" on $200 million 6.15% senior unsecured notes, due 2015
-- "bb+" on $8 million 7.75% Series A non-cumulative preferred shares

The following indicative shelf ratings have been affirmed for debt securities available under the existing shelf registration:

Endurance Specialty Holdings, Ltd—
-- "bbb" on senior unsecured debt
-- "bbb-"on subordinated debt
-- "bb+" on preferred stock

Endurance Holdings Capital Trust I & II (guaranteed by Endurance Specialty Holdings, Ltd)—
-- "bb+" on preferred securities

For Best's Credit Ratings, an overview of the rating process and rating methodologies, please visit [ www.ambest.com/ratings ].

The principal methodologies used in determining these ratings, including any additional methodologies and factors that may have been considered, can be found at [ www.ambest.com/ratings/methodology ].

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 ].