Jupiter Affirmed

A.M. Best Co. affirmed the financial strength rating of “A+” (superior) of Jupiter Insurance Limited. The outlook remains stable. The rating reflects Jupiter’s superior capital strength and operating performance. An offsetting factor is the restricted business diversification driven by Jupiter’s status as a single parent captive of BP plc, an integrated oil and gas company.

Jupiter has a superior capital position and follows a conservative policy of maintaining capital of at least four times its estimated maximum loss (EML). The 2004 EML is expected to increase from $375 million to $500 million, as Jupiter is to insure some of the risks currently covered directly by BP. In anticipation of this increase, Jupiter received a capital injection of $890 million in November 2003. Best believes that this discount note provides a good balance between investment security and yield.

Jupiter’s current and prospective operating performance is regarded as superior. After-tax profits for 2003 are estimated at $327 million compared to $158 million at year-end 2002. The company is expected to report underwriting profits of approximately $231 million for 2003. Profitability is expected to improve further in 2004. Jupiter’s business generation is solely dependent on BP, in line with single parent captives. In addition, Jupiter is further restricted because of BP’s preference to insure only when required by regulatory authorities or contractual obligations. As a result, over 90 percent of Jupiter’s premium originates from a single contract. There are no plans to insure third party risks.