Best Rates Liberty Mutual Europe ‘A’

December 15, 2008

A.M. Best Co. has assigned a financial strength rating of ‘A’ (Excellent) and an issuer credit rating of “a” to UK-based Liberty Mutual Insurance Europe Limited (LMIE), a part of the Liberty International Underwriters division of Liberty Mutual Group. The outlook for both ratings is stable.

“The ratings reflect LMIE’s solid balance sheet strength, strong operating performance within its niche markets, and brand recognition achieved as part of, a strong global franchise led by its U.S. domiciled parent, Liberty Mutual Insurance Company (LMIC) (Boston, MA),” said Best. “The ratings also consider the explicit support provided by its parent.”

Best added that these “positive rating factors are partially offset by earnings fluctuations in earlier years, and the risk associated with achieving adequate risk pricing going forward given soft market conditions.

“Despite these concerns, the outlook reflects the niche market knowledge, solid profitability and excellent capital position achieved through the retention of profitable earnings.”

Source: A.M. Best – www.ambest.com