A.M. Best Comments on Ratings of IPC Holdings Ltd. and Its Subsidiaries

A.M. Best Co. has commented that the financial strength rating of A (Excellent) and issuer credit ratings of "a” of IPCRe Limited (Bermuda) and IPCRe Europe Limited (Dublin, Ireland), which are reinsurance subsidiaries of IPC Holdings Ltd. (IPC) (Bermuda) (NASDAQ: IPCR), remain under review with negative implications following the recent shareholder vote to terminate a merger agreement with Max Capital Group Ltd. A.M. Best also has maintained all debt ratings of IPC under review with negative implications.

The under review status reflects the uncertainty with respect to IPC’s future ownership and to a lesser extent, the pending retirement of its long-standing Chief Executive Officer, Jim Bryce, for whom a long-term successor is being sought.

At this time, IPC is being actively pursued by an outside company whose intention is to acquire IPC with or without the approval of IPC’s management or Board of Directors. IPC shareholders have requisitioned IPC’s Board of Directors to hold a special shareholders’ meeting to vote on replacing the present Board of Directors. Concurrently, IPC’s Board of Directors and management continue to solicit potential bidders during this period.

A.M. Best will maintain the ratings under review with negative implications until IPC’s ownership position is stabilized, and A.M. Best completes its analysis of the company’s strategic role as part of another organization or as a stand-alone entity if no transaction is completed.

For Best’s Credit Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings.

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

Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com.