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A.M. Best Places Ratings of Montpelier US Insurance Company Under Review

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^{Published in Business and Finance on Wednesday, September 21st 2011 at 7:42 GMT by Market Wire}  

OLDWICK, N.J.--([ BUSINESS WIRE ])--A.M. Best Co. has placed under review with positive implications the financial strength rating of A- (Excellent) and issuer credit rating (ICR) of aa-a of Montpelier US Insurance Company (MUSIC) (Oklahoma City, OK).

"Risk Management and the Rating Process for Insurance Companies"

These rating actions follow the recent announcement that Montpelier Re Holdings Ltd. (NYSE: MRH) has entered into a definitive agreement with[ Selective Insurance Group ], Inc. (NASDAQ: SIGI) for the sale of MUSIC, its U.S. excess and surplus lines insurance business. The ratings will remain under review pending regulatory review, approval and the completion of A.M. Besta™s analytical process.

At the close of the transaction, MUSIC will be added to the Selective Insurance Group (Selective) pool. The FSR of A+ (Superior) and ICR of aaa-a of Selective were affirmed in May 2011 with a negative outlook.

The principal methodology used in determining these ratings is [ Besta™s Credit Rating Methodology -- Global Life and Non-Life Insurance Edition ], which provides a comprehensive explanation of A.M. Besta™s rating process and highlights the different rating criteria employed. Additional key criteria utilized include: aRating Members of Insurance Groupsa; aRisk Management and the Rating Process for Insurance Companiesa; and aUnderstanding BCAR for Property/Casualty Insurers.a Methodologies can be found at [ www.ambest.com/ratings/methodology ].

Founded in 1899, A.M. Best Company is the worlda™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.