AM Best Affirms Credit Ratings of Navigators International Insurance Company Ltd.

AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of a+ of Navigators International Insurance Company Ltd. (NIIC) (United Kingdom). The outlook of these Credit Ratings (ratings) remains stable.

The ratings reflect NIICs balance sheet strength, which AM Best categorises as very strong, as well as its marginal operating performance, neutral business profile and appropriate enterprise risk management.

The ratings also reflect the implicit and explicit support provided to NIIC by its ultimate parent, The Hartford Financial Services Group, Inc. (The Hartford), which includes a capital maintenance agreement from NIICs intermediate parent, The Navigators Group, Inc. (NAVG), as well as NIICs importance to the group to write U.K. corporate business outside Lloyds post-Brexit.

NIIC commenced writing marine, casualty and professional liability business in 2017, and benefits from the established specialist market position, underwriting expertise and the NAVG brand. NIICs future strategy is under review currently due to the U.K.s expected withdrawal from the European Union. Nevertheless, the company is considered important to The Hartford’s long-term strategic plan as a means to access the U.K. corporate market outside Lloyds post-Brexit.

The balance sheet strength assessment reflects NIICs very strong risk-adjusted capitalisation, as measured by Bests Capital Adequacy Ratio (BCAR), its high quality investment portfolio and its comprehensive reinsurance protection. AM Best expects the companys risk-adjusted capitalisation to improve to the strongest level in 2019, reflecting a decrease in underwriting risk following the reorganisation of The Hartford groups operations in Europe.

NIICs operating performance has been marginal since inception due to unexpectedly large claims and high start-up expenses. AM Best expects prospective underwriting results to be affected negatively by the companys lack of scale.

This press release relates to Credit Ratings that have been published on AM Bests website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Bests Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Bests Credit Ratings. For information on the proper media use of Bests Credit Ratings and AM Best press releases, please view Guide for Media – Proper Use of Bests Credit Ratings and AM Best Rating Action Press Releases.

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Martina Seydoux

Financial Analyst

+44 20 7397 0308

[email protected]

Timothy Prince

Director, Analytics

+44 20 7397 0302

[email protected]

Christopher Sharkey

Manager, Public Relations

+1 908 439 2200, ext. 5159

[email protected]

Jim Peavy

Director, Public Relations

+1 908 439 2200, ext. 5644

[email protected]