[January 10, 2013]

A.M. Best Affirms Ratings of Liffey Reinsurance Company Limited

A.M. Best Co. has affirmed the financial strength rating of A- (Excellent) and issuer credit rating (ICR) of "a-" of Liffey Reinsurance Company Limited (Liffey Re) (Dublin, Ireland). The outlook for both ratings is stable.

The ratings reflect Liffey Re's solid capitalization, strong operating results and its experienced management team that has an in-depth knowledge of the markets in which it operates. Offsetting these positive rating factors is the company's limited business profile as it currently only assumes business from its parent, QBE del Istmo Reinsurance Company, Inc.

The reinsurance business Liffey Re assumes on a retrocession quota share basis, includes personal accident, fire, auto, marine cargo and fidelity.

The company's enterprise risk management framework is fully aligned with tht of its parent and includes oversight by executive committees and the Board of Directors.

Positive rating actions may be considered in the long term if Liffey Re maintains strong operating results and capitalization levels.

Negative rating actions may occur if the company grows excessively or if operating results or capitalization deteriorates significantly.

The methodology used in determining these ratings is Best's Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best's rating process and contains the different rating criteria employed in the rating process. Key criteria utilized include: "Risk Management and the Rating Process for Insurance Companies"; "Rating Members of Insurance Groups"; "Understanding Universal BCAR"; and "Evaluating Country Risk." Best's Credit Rating Methodology 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 © 2013 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.

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