Strong competitive position, supported by the significant barriers to entry within protection and indemnity insurance. Very strong capitalization supported by conservative reserving and reinsurance. Strong financial flexibility based on ability to make unbudgeted supplementary calls and impose significant premium increases at renewal. Concentration on volatile insurance classes where frequency and size of large claims is unpredictable. Above average investment-risk tolerance compared with non-life insurance industry norms. The ratings reflect Gard's strong competitive position, very strong capitalization underpinned by a strong enterprise risk management (ERM) assessment, strong financial flexibility, and strong operating performance. We believe, however, that volatility will remain a weakness in Gard's financial profile because of the prevailing level of financial and underwriting risks, although we believe these will
