A- for Island Heritage

Heritage, a Cayman Islands based insurance provider, has announced its
financial strength rating of A- (Excellent) and issuer of credit rating of “a-”
has been affirmed by the A.M. Best Co. The outlook for both ratings is stable.

press release states the ratings of Island Heritage reflect its solid level of
risk-adjusted capitalization, favourable operating results and local market
expertise, as well as reflecting the benefits to Island Heritage from its
majority owner, Flagstone Reinsurance Holdings Limited. Flagstone Holdings provides
Island Heritage access to enhanced modelling capabilities and reinsurance
capacity as well as increased financial flexibility as a member of a publicly
traded group.

offsetting these positive rating factors are Island Heritage’s geographic
concentration, substantial dependency on reinsurance, competitive market and
local regulatory risk.

Heritage focuses on the unique needs of the Caribbean property owner. As a predominantly
Caribbean property insurer, Island Heritage is exposed to significant
catastrophe risk; however, this is mitigated by the company’s extensive
reinsurance program which protects the company’s capital from both the
frequency and severity of events.

principal methodologies used in determining these ratings, including any
additional methodologies and factors which may have been considered, can be
found at www.ambest.com/ratings/methodology.

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