A.M. Best Upgrades Ratings of CastlePoint National Insurance Company

A.M. Best Co. has upgraded the financial strength rating to A- (Excellent) from B+ (Good) and issuer credit rating to “a-” from “bbb-” of CastlePoint National Insurance Company (CNIC) (formerly known as SUA Insurance Company) (Chicago, IL). Both ratings have been removed from under review with positive implications and assigned a stable outlook.

On November 13, 2009, Tower Group, Inc. (Tower) [NASDAQ: TWGP] acquired Specialty Underwriters’ Alliance, Inc. (SUAI) in a transaction valued at $107 million based on Tower’s closing price. SUAI is a holding company that directly owns CNIC. Under the terms of the transaction, at the effective date, each share of SUAI’s common stock was converted into the right to receive 0.28 shares of Tower common stock. As a result of the transaction, the common stock of SUAI was delisted from The NASDAQ Global Market, and trading was suspended effective as of the closing of trading on the date of the acquisition.

On December 30, 2009, SUA Insurance Company’s name was changed to CNIC in Illinois, its jurisdiction of domicile, but the name change has not yet been recorded by insurance regulators in all jurisdictions where the company does business. In the jurisdictions that have not yet recorded the name change, the company will continue to do business under the name SUA Insurance Company until the name change is recorded and a license in the new name is issued.

These rating actions reflect CNIC’s addition to the Tower Group Companies pool on December 31, 2009, retroactive to January 1, 2009.

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.