A.M. Best Withdraws Ratings of Arden Reinsurance Company Ltd.

A.M. Best Co. has removed from under review with negative implications and affirmed the financial strength rating of A- (Excellent) and issuer credit rating of "a-" of Arden Reinsurance Company Ltd. (Arden Re) (Bermuda). The outlook assigned to both ratings is stable. Concurrently, A.M. Best has withdrawn the ratings in response to management's request to no longer participate in A.M. Best's interactive rating process.

The ratings reflect Arden Re's excellent level of risk-adjusted capitalization, overall favorable operating performance and solid enterprise risk management capabilities. These strengths are partially offset by Arden Re's limited business profile following the sale of its insurance and reinsurance operations to the Goldman Sachs Group Inc. and the sale of its Zurich-based credit and surety operations to Arch Capital Holdings Ltd. in April 2012. As a result of these transactions, Arden Re is a much smaller entity with a significantly reduced risk profile. Arden Re continues to assume the business underwritten by its Lloyd's affiliate, Atrium 5 Limited, being a subsidiary of Atrium Underwriting Group Limited, under an existing quota share arrangement that remains in force. This business has historically proven to be very profitable.

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. Best's Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.

A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

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A.M. Best Co.
Gale Guerra, 908-439-2200, ext. 5069
Senior Financial Analyst
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Robert DeRose, 908-439-2200, ext. 5453
Vice President
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Rachelle Morrow, 908-439-2200, ext. 5378
Senior Manager, Public Relations
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Jim Peavy, 908-439-2200, ext. 5644
Assistant Vice President, Public Relations
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