28 January 2003

AM Best has revised the outlook of TT Club's rating (Through Transport Mutual Insurance Association Ltd) following a review of its performance since May this year when the Club reported its 2001 loss of US$40m including a strengthening of claims reserves of US$23m.

The necessity to strengthen reserves was due principally to an adverse estimated claims position in the back years 1999 and 2000.

Best's rating for TT is maintained at B+ but the

' has been lifted and a

assigned instead.

Paul Neagle, CEO of TT commented, "We are extremely pleased to see this formal acknowledgement of our rigorous planning processes and business management. The AM Best interactive rating is important to the Club because it represents an independent assessment of the Club's continued financial strength, operating performance and market profile."

The rating is within the premier category that AM Best designates as 'secure' and reflects significant confidence in the future market position of the Club. AM Best has factored in both the finite re-insurance contract signed with Swiss Re in May this year (which had the effect of protecting the Club from future claims exposure), and the August announcement of a quota share deal with two of the worlds biggest re-insurers that effectively increased the Club's capacity by over 70% up to 2004.

Best also recognised the many incentives to re-build the free reserves that have been put in place by the Club, including strict policy rules for new and renewing business, new controls on investment exposure, premium increases and the tough attitude to long term adverse record business.

Ian Lush, Marketing Director for TT explained that the Club chose AM Best to provide its interactive rating becauseit (AM Best) is the premier rating agency for the insurance sector and is very highly regarded, particularly in the US marketplace which is a key element in TT's plans for expansion.

The main factors that are considered by AM Best are:

Financial strength and performance,

:

• underwriting performance, capital adequacy, quality of reserve policy and the re-insurance programme, reinsurance strategy, financial flexibility, asset quality & diversification and composition of revenues.

Market position/size and growth,

• ability to respond to market challenges and relationship with distributors.

Management structure,

• eperience of staff, objectives of senior management and integrity of management.

Awareness of the market place and challenges ahead,

:

• ability to remain competitive, business mix, market risk and strategic plans

Regulatory compliance Interactively rated organisations are subject to a uniform, independent review process including information requests, quantitative tests and qualitative evaluations, and are classified within peer groups that possess similar operating and size profiles so that the rating awarded is a true reflection of financial performance. To be specific, the AM Best rating benchmarks TT within its strategic group, comparing like with like. Public ratings are not interactive and therefore, cannot allow comparison on a like for like basis. If you have any questions concerning the Club's revised rating please contact your insurance broker or: For further information please contact: Ian Lush Tel + 44 (0)20 7204 2642 E-mail: ian.lush@thomasmiller.com Media contact: Michael Haig and Peter Owen, ISIS Communications Tel +44 (0)1737 248300 E-mail: info@isiscomms.com