A.M. Best Co. has affirmed the financial strength rating of B++ (Good) and upgraded the issuer credit rating to “bbb+” from “bbb” of Interglobal Insurance Company Limited (Interglobal) (UK). The outlook for both ratings is stable.

The rating actions reflect Interglobal’s improving business position, good prospective earnings and strong risk-adjusted capitalization.

In A.M. Best’s opinion, Interglobal has a growing business position in international private medical insurance for expatriates and high net worth individuals and benefits from a recognized and established brand in the Middle East and Asian markets (initially established when the company was a management agency). A.M. Best believes that this will enable Interglobal to develop strongly in 2008 and 2009 (to USD 120-140 million gross written premiums, from USD 47 million in 2007) as the company takes advantage of the growing demand for private medical insurance products worldwide.

A.M. Best expects Interglobal’s profitability to remain good in 2008 and 2009 (with a return on equity of 10-15%), supported by good technical results and moderate investment returns. Interglobal’s loss ratio is likely to remain relatively stable at around 55-60% in the medium term. While the company’s operating expenses are likely to be high due to high commissions to brokers and worldwide strategic insurance partners, A.M. Best expects Interglobal to maintain a combined ratio below 95%.

A.M. Best believes that Interglobal’s risk-adjusted capitalization is likely to remain strong prospectively, despite the strong forecasted growth in net written premiums. A.M. Best expects the company to continue to fully retain its earnings to strengthen its capital levels and support its business growth. Interglobal, initially capitalized at USD 32.5 million in April 2007, benefits from limited risks on its balance sheet due to the short tail nature of its portfolio and conservative investment policy.