A.M. Best Affirms Rating of RBC Life Insurance; Removes From Under Review

Business Wire, May 5, 2004

Business Editors

OLDWICK, N.J.--(BUSINESS WIRE)--May 5, 2004

A.M. Best Co. has affirmed the financial strength rating of A (Excellent) of RBC Life Insurance Company (RBC Life) (Mississauga, Ontario). The rating has been removed from under review with negative implications and assigned a stable outlook.

This rating action follows the completion of RBC Life's acquisition of the Canadian branch operations of Provident Life and Accident Insurance Company (Provident) (Ontario) and the review of the organization's capitalization and operating plans going forward. A.M. Best recognizes the strategic merit of this transaction, providing RBC Life with portfolio and income diversification while significantly increasing its position in the individual and group living benefits insurance market. Furthermore, A.M. Best notes the continued financial support afforded to RBC Life from its ultimate parent, Royal Bank of Canada, which funded this transaction.

The rating reflects RBC Life's adequate capitalization, diversified distribution channels, living benefit growth opportunities and the financial support from its parent. Although A.M. Best acknowledges the integration challenges associated with this transaction, these concerns are somewhat mitigated by a transition plan that has been implemented by RBC Life to provide technology infrastructure and support necessary for policy administration.

A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. For more information, visit A.M. Best's Web site at www.ambest.com.