A.M. Best Affirms Rating of Connaught Insurance Company

OLDWICK, N.J.--(BUSINESS WIRE)--July 14, 2003--A.M. Best Co. has affirmed the financial strength rating of B+ (Very Good) of Connaught Insurance Company Limited, the Guernsey-based single parent captive of Thomas Greg & Sons de Colombia S.A. The outlook is stable.

Published on July 14, 2003

The rating reflects the company's solid operating performance, strong risk-based capitalisation, high levels of liquidity and cash flow and sound risk management practices. In addition, the rating recognises Connaught's integral role in facilitating the trading operations of its parent, Thomas Greg & Sons Limited (TG&S).

Offsetting rating factors include the company's concentration on one predominant line of business, its status as a single parent captive, its size (surplus was USD 5.6 million at year-end 2002) and very substantial reliance upon reinsurance protection. The rating also reflects the volatility implicit in the type of business written both in terms of underlying risk and the availability and pricing of open market coverage, which has been evident in a much higher loss ratio for 2002, increased retentions and significantly increased reinsurance costs for 2003.

Expectations:

-- A.M. Best expects Connaught to continue to underwrite to an
aggregate retention level that is consistent with its current
rating level and to maintain a strong risk-adjusted capital
position.

-- A.M. Best does not foresee any material changes in Connaught's
income stream or overall expense levels.

A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. For more information, visit A.M. Best's Web site at www.ambest.com.