Best Withdraws Syndicate 102 Rating; Comments on Goshawk Re

November 4, 2003

A.M. Best Co. announced that it has withdrawn its Syndicate Rating of A- (Excellent) of Lloyd’s Syndicate 102 and assigned it an NR-3 rating (Rating Procedure Inapplicable).

“The rating withdrawal follows the decision by Goshawk Insurance Holdings Plc to place syndicate 102 into run off after significant losses announced during 2003,” said the bulletin.

Best further stated that it believes “the syndicate’s run off will have a limited impact on Goshawk Reinsurance Limited (Goshawk Re)—currently rated A- (Excellent)—due to the effective limited liability of the syndicate’s operations.”

It noted that “Goshawk Re will now fund repayments of the USD 65 million term debt issued by its immediate holding company, in addition to collateralising a letter of credit equating to GBP 15 million (USD 25.5 million) to support funds at Lloyd’s for syndicate 102, both of which have been factored into the company’s risk-adjusted capitalisation. The outlook on the Goshawk Re financial strength rating remains negative.”

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