Credit Suisse First Boston Introduces Credit Suisse Longevity Index

Business Wire, Dec 12, 2005

NEW YORK -- Credit Suisse First Boston ("CSFB") is pleased to announce the release of the Credit Suisse Longevity Index(SM), the first index designed specifically to enable the structuring and settlement of longevity risk transfer instruments such as longevity swaps and structured notes. The Index is intended for use by institutional investors, insurance companies, reinsurance companies and providers of post-retirement benefits as well as other longevity and mortality risk managers.

"By offering market participants a single, transparent reference tool, the index will help spur the development of a liquid, tradable market in longevity risk," said Jeremy Bennett, Managing Director and Global Head of CSFB's Structuring Group.

The Credit Suisse Longevity Index(SM) is a standardized measure of the expected average lifetime for general populations based on publicly available statistics. The Index includes both historical and forward values and will be released annually. Initially, the Index references US population data only. Data on other select countries will be forthcoming. In addition to the Composite Index representing the total population, there are also gender and age specific sub-indices.

"We are proud to offer this new analytical tool to the marketplace," said Mr. Bennett. "The Index offers a wide variety of potential applications including allowing risk managers, life insurers and others to take a view on longevity in the future and measure the impact of long-term trends more easily."

The CSFB Longevity Index may be used to examine a wide variety of mortality and longevity rate issues. For example, over the past decade the average mortality rate among men has improved 2.02% annually versus an improvement of 0.95% among women. For the US population overall, longevity increased from 77.7 years in 1983 (based on 1980 data) to 80.4 years in 2005 (based on 2002 data). In a separate report, "Credit Suisse Longevity Index(SM) Commentary," CSFB highlights these and a number of other key findings based on the Index.

CSFB's report highlights other mortality risk concerns, including the impact of a potential flu pandemic in the U.S. Based on CSFB's findings, the 1918 flu pandemic would have caused the 2005 Index to drop from 80.4 years to 75.2 years.

The Credit Suisse Longevity Index(SM) and related financial instruments now under development will significantly expand CSFB's presence in the mortality risk trading markets. These products complement the Firm's life insurance finance product breadth and strengthen its market leadership in lifelong premium finance and installment premium finance.

The global actuarial firm Milliman, Inc. will serve as the calculation agent for the Index. The most recent year's Index and its underlying mortality rates, along with updated projections, will be released annually and will be calculated by Milliman.

For further information on the Longevity Index(SM) we direct you to: http://csfb.com/institutional/longevityindex. Additionally, the Longevity Index(SM) will be available today on Bloomberg terminals at LIFF GO.

NOTE: This does not constitute an offer of commitment, a solicitation of an offer or commitment, or any advice or recommendation, to conclude any transaction. This summary does not purport to contain a complete description of all terms and conditions of the Longevity Index(SM) or all of the information that an interested party may desire. Before entering into any transaction, you should ensure that you review the definitive documentation, that you fully understand the potential risks and rewards of that transaction and that you independently determine that the transaction is appropriate for you given your objectives.

Credit Suisse First Boston (CSFB) is the trade name for the investment banking business of Credit Suisse and its subsidiaries and affiliates. CSFB is a leading global investment bank serving institutional, corporate, government and individual clients. Its businesses include securities underwriting, sales and trading, investment banking, private equity, financial advisory services, investment research, venture capital, correspondent brokerage services and asset management. CSFB operates in 69 locations in 33 countries across five continents. CSFB is a division of the Zurich-based Credit Suisse Group, a leading global financial services company.