A.M. Best Affirms Credit Ratings of Transatlantic Reinsurance Company and Alleghany Corporation - Seite 2

The ratings of CapSpecialty reflect its balance sheet strength, which A.M. Best categorizes as very strong, as well as its marginal operating performance, neutral business profile and appropriate ERM.

CapSpecialty’s operating performance is considered marginal, which is largely reflective of its overall return metrics and an expense ratio that underperforms the industry. However, as CapSpecialty continues to reposition its book of business, this has translated into more prudent risk selection and a loss ratio that compares favorably with peers.

Alleghany’s ratings are indicative of the organization’s historic overall earnings capabilities, low levels of financial leverage and favorable financial flexibility, as well as its consistent track record of supporting its insurance operations.

The FSR of A+ (Superior) and the Long-Term ICRs of “aa-” have been affirmed with stable outlooks for Transatlantic Reinsurance Company and its following subsidiaries:

• TransRe Zurich Ltd.
• TransRe London Limited
• Fair American Insurance and Reinsurance Company
• Fair American Select Insurance Company
• Calpe Insurance Company Limited

The FSR of A+ (Superior) and the Long-Term ICRs of “aa-” have been affirmed with stable outlooks for the following members of RSUI Group:

• RSUI Indemnity Company
• Landmark American Insurance Company
• Covington Specialty Insurance Company

The FSR of A (Excellent) and ICRs of “a” has been affirmed with stable outlooks for the following members of CapSpecialty Insurance Group:

• Capitol Indemnity Corporation
• Platte River Insurance Company
• Capitol Specialty Insurance Corporation

The following Long-Term IRs have been affirmed with stable outlooks:

Alleghany Corporation—

-- “a-” on $300 million 5.625% senior unsecured notes, due 2020

-- “a-” on $400 million floating rate senior unsecured notes, due 2022

-- “a-” on $300 million 4.9% senior unsecured notes, due 2044

Transatlantic Holdings Inc.—

-- “a-” on $350 million 8% senior unsecured notes, due 2039

This press release relates to Credit Ratings that have been published on A.M. Best’s 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 A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.