A.M. Best Upgrades Ratings of American Agri-Business Insurance Company: Removes From Under Review

OLDWICK, N.J., Jun 17, 2008 (A. M. Best via COMTEX) -- ENH | Quote | Chart | News | PowerRating -- A.M. Best Co. has upgraded the financial strength rating (FSR) to A- (Excellent) from B++ (Good) and issuer credit rating (ICR) to ?a-? from ?bbb? of American Agri-Business Insurance Company (AA-BIC) (Lubbock, TX). The ratings have been removed from under review with positive implications and assigned a stable outlook.

The ratings reflect AA-BIC?s strong capitalization and reinsurance arrangements, as well as management?s extensive experience with the federally subsidized multiple peril crop insurance (MPCI) program. Additionally, the ratings recognize the financial flexibility and overall support provided to the company by its owner, Endurance US Holdings Corporation (Endurance), a subsidiary of Endurance Specialty Holdings Ltd. (Bermuda) [NYSE:ENH], a publicly traded company.

Somewhat offsetting these positive rating factors are the high utilization of reinsurance, resulting in an elevated leverage of ceded premiums and losses to surplus. This subjects AA-BIC to above average dependence on reinsurance; however, this is somewhat mitigated by the fact that the majority of AA-BIC?s non-governmental reinsurance capacity is provided by Endurance.

For current Best?s Ratings, independent data and analysis on more than 330 reinsurance companies, please visit http://www.ambest.com/reinsurance.

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