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 remain within Gard's risk tolerances. Gard benefits from a strong competitive position supported by the significant barriers to entry within P&I (protection and indemnity) insurance. With a market share of approximately 14%, Gard P&I (Bermuda) Ltd. is the largest (as measured by gross premium calls, assets, and free reserves) and the most respected of the 13 global P&I clubs that make up the International Group of
