Fitch Affirms Business Men's Assurance Co.; Removes from Rtg Watch

Business Wire, July 13, 2004

CHICAGO -- Fitch Ratings has affirmed its 'A ' insurer financial strength rating on Business Men's Assurance Company of America (BMA) and removed the rating from Rating Watch Negative. The Rating Outlook for the rating is Stable.

Today's rating action reflects Fitch's evaluation of BMA's current position within RBC Insurance, the North American insurance operations of Royal Bank of Canada. BMA became a part of RBC Insurance on May 1, 2003, when it was acquired from its former parent, Assicurazioni Generali S.p.A., by Liberty Life Insurance Company, which is also an operating company within RBC Insurance.

While Fitch considers BMA's stand alone business profile to be considerably less diversified following its acquisition, this concern is somewhat alleviated by its position within the more diversified RBC Insurance operation. In addition, BMA's risk adjusted capitalization has been strengthened by its parent and it has retained its conservative investment profile. Although the liabilities of BMA are not explicitly guaranteed by Royal Bank of Canada, BMA does benefit to some extent from the strength of its ultimate parent given its importance to the overall growth strategy of RBC Insurance in the North American insurance market.

Entity/Issue Type/Rating/Outlook

Business Men's Assurance Company of America

--Insurer financial strength 'A '/Stable.