A.M. Best Downgrades Rating of Tokio Millennium Re Ltd. and Revises Outlook to Stable; Assigns Issuer Credit Rating

Business Wire, July 12, 2005

OLDWICK, N.J. -- A.M. Best Co. has downgraded the financial strength rating (FSR) of Tokio Millennium Re Ltd. (TMR) (Bermuda) to A (Superior) from A (Superior) and revised the outlook to stable from negative. At the same time, A.M. Best has assigned an issuer credit rating (ICR) of "aa-" with a stable outlook to TMR.

The downgrade of TMR's rating is based on revised application of insurance group methodology. (See Rating Members of Insurance Groups at http://www.ambest.com/ratings/membergroups.pdf.)

The ratings reflect TMR's strategic importance to TMNF, its very strong capital position, good operating performance and established niche market position. The company's stand-alone risk-adjusted capital position is supported by conservative underwriting practices, investment strategies and risk management techniques. Offsetting factors are the increasingly competitive reinsurance pricing environment and the volatile nature of the catastrophe reinsurance business.

The stable outlook on both ratings reflects TMR's position within the A (Superior) category, which includes strategic lift from the parent.

For more information on A.M. Best's ratings and the treatment of debt, please visit http://www.ambest.com/debt/debtmethod.pdf.> For Best's Ratings, an overview of the rating process and rating methodologies, please visit http://www.ambest.com/ratings.> 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 http://www.ambest.com.