RTWI Rtw (MM)

A.M. Best Co. has affirmed the financial strength ratings (FSR) of B++ (Good) and the issuer credit ratings of �bbb+� of RTW Group and its members, which consist of American Compensation Insurance Company (ACIC) and Bloomington Compensation Insurance Company (BCIC), a reinsured wholly owned subsidiary of ACIC. ACIC and BCIC operate as subsidiaries of RTW, Inc. [NASDAQ:RTWI]. A.M. Best has also affirmed the ICR of �bb+� of RTW, Inc. The outlook for all ratings is positive. All companies are domiciled in Bloomington, MN. The ratings reflect RTW Group�s strong capitalization, focus on integrated absence management and solid underwriting performance. Since December 2001, the group closed unprofitable regions, reduced premiums in force, improved pricing and refocused on its specific underwriting niche and intense claims and case management. The outlook reflects the group�s strong operating performance through focused underwriting and claims management initiatives, which have contributed to organic growth in surplus totaling $27.0 million during the group�s recent five year period. Offsetting these positive rating factors are the slight deterioration in underwriting performance in 2006 resulting in an underwriting loss and the declining level of reserve redundancies. For Best�s Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings. Founded in 1899, A.M. Best Company is a full-service credit rating organization dedicated to serving the financial services industries, including the banking and insurance sectors. For more information, visit www.ambest.com.