A.M. Best Comments on Swiss Re's Ratings Following the Acquisition of GE Insurance Solutions

Business Wire, June 12, 2006

OLDWICK, NEW JERSEY -- A.M. Best Co. has commented that the ratings of Swiss Re Group (Swiss Re) (Switzerland) and its rated entities remain under review with negative implications; however, A.M. Best aims to resolve the under review status within the next four to six weeks, following the announcement that Swiss Re has finalized the acquisition of GE Insurance Solutions (excluding U.S. life and health operations).

A.M. Best has also commented that the ratings on the newly acquired subsidiaries of GE Insurance Solutions Corporation (Overland Park, KS)--excluding Employers Reassurance Corporation--remain under review with developing implications. These ratings apply to Employers Reinsurance Corporation and GE Reinsurance Corporation (together known as Employers Re Corp. Group), Westport Insurance Corporation and Coregis Insurance Company. The ratings of the main operating entities of the GE Frankona Group (Germany) also remain under review with developing implications.

A.M. Best believes that Swiss Re is now in a better position to make decisions about the future business strategy and future structure of the entire group. A.M. Best continues to evaluate the potential impact of this acquisition on Swiss Re's prospective consolidated capitalisation in light of historical significant adverse reserve development at Employers Reinsurance Corporation, although the USD 3.4 billion reserve strengthening, which has taken place in conjunction with the acquisition, has alleviated some of the concerns. In addition, A.M. Best is continuing to discuss with Swiss Re's management the potential for further adverse reserve developments in Swiss Re's liability portfolio, which in 2005, were mostly compensated by positive developments in other lines of business. A.M. Best's analysis also focuses on catastrophe risk management and the impact of the protection of the recently issued USD 950 million catastrophe bond on Swiss Re's property catastrophe exposure.

A.M. Best's analysis will further concentrate on the relatively high execution risk inherent when merging an operation of this size and complexity, although Swiss Re has demonstrated in the past that it can successfully integrate acquisitions.

For Best's Ratings, an overview of the rating process and rating methodologies, please visit 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 www.ambest.com.