Rembrandt Affirmed

A.M. Best Co. affirmed the financial strength rating of “A” (excellent) and assigned an issuer credit rating of “a” to Rembrandt Insurance Co. Ltd., reflecting Rembrandt’s strong risk-adjusted capitalization and solid financial performance, as well as its business concentration on the Vitol group’s risks. The outlook for both ratings is stable.

Best believes Rembrandt will likely maintain strong risk-adjusted capitalization supported by low net exposure after taking account of its comprehensive reinsurance program placed with secure-rated companies. Retained earnings are likely to increase at a lower rate of approximately 6 percent over the next two years (compared to 36 percent in 2004) as dividends are paid from 2005 onwards.

Best expects robust financial performance over the next two years as Rembrandt’s past excellent underwriting performance is likely to be maintained and will continue to be the main driver for pre-tax profits. The combined ratio of 43.6 percent in 2004 is forecast to further improve to approximately 37 percent by 2006 due the increase in net claims reserves expected.

Rembrandt is likely to remain focused on underwriting the Vitol Group’s risks, mainly insuring marine cargo and charterers’ liability risks. Best believes diversification into other lines of business or into third-party risks is unlikely to be significant in terms of premium volume over the next two years.