A.M. Best Affirms and Upgrades Ratings of General Re Group, General Re Corporation and General Re Life Corporation

Business Wire, August 7, 2007

OLDWICK, N.J. -- A.M. Best Co. has affirmed the financial strength rating (FSR) of A (Superior) and the issuer credit ratings (ICR) of "aa " of General Re Group (Gen Re) (Delaware). These ratings apply to General Reinsurance Corporation (Delaware) and its core property/casualty and life reinsurance and insurance subsidiaries operating both in the United States and internationally. In addition, A.M. Best has affirmed the ICR and senior debt ratings of "aa " and the commercial paper of AMB-1 of Gen Re's direct parent, General Re Corporation (Connecticut). A.M. Best has also upgraded the FSR to A (Superior) from A (Superior) and the ICR to "aa " from "aa-" of General Re Life Corporation (Gen Re Life) (Stamford, CT). The outlook for all ratings is stable. (See below for a detailed list of companies and ratings.)

These ratings reflect Gen Re's superior capitalization, excellent business position as a leader within the global reinsurance marketplace and adherence to stringent underwriting discipline, which in turn lends to the group's strong prospective earnings capability. In addition, solid investment earnings continue to support excellent total return measures, while Gen Re maintains strong liquidity given the solid credit quality of its fixed income holdings and its laddered approach to asset liability matching. The group's superior ratings also reflect the implicit and explicit financial support provided by its ultimate parent, Berkshire Hathaway Inc.

Gen Re's risk-adjusted capitalization has improved considerably over the most recent five-year period, supported by sizeable reinsurance transactions with affiliates, National Indemnity Company and Columbia Insurance Company, both currently rated A (Superior). These reinsurance transactions, which were effective on January 1, 2005, include a loss portfolio reinsurance contract and a quota share reinsurance contract, both of which provided significant reinsurance protection to Gen Re. Additionally, strong total return measures bolstered by underwriting improvements and solid investment income generation have supported the group's ability to generate the accumulation of capital, as its consolidated GAAP equity approximated $11 billion at year-end 2006.

Somewhat offsetting these positive rating factors are the competitive pressures in the global property/casualty reinsurance market, which could potentially suppress Gen Re's mid-to-long-term underwriting results and pressure its overall expense position. Furthermore, although Gen Re has considerably strengthened its overall loss reserve position, adverse development on prior accident year casualty reserves primarily attributed to workers' compensation, and environmental claims have eroded operating margins. In addition, impacting underwriting results are losses attributed to the run off of the group's finite insurance operations. Given Gen Re's underwriting and improved reserving practices, the impact of prior year reserve development has moderated, and recent accident year loss ratios are demonstrating favorable trends. Due to the aforementioned reinsurance transactions, Gen Re's overall liability leverage is conservative, which reduces the impact of potential loss reserve development on its risk-adjusted capitalization.

The upgrading of Gen Re Life's ratings are reflective of its improved capitalization and continued statutory profitability. A.M. Best believes the U.S. life/health business is a significant contributor to the overall results of Gen Re; and therefore, has afforded Gen Re Life the group ratings status.

The FSR of A (Superior) and the ICRs of "aa " have been affirmed for General Re Group and its following core property/casualty and life reinsurance and insurance companies:

* Cologne Re Group

* Faraday Reinsurance Company Limited

* Gen Re Group (US)

* General Reinsurance Corporation

* General Star Indemnity Company

* General Star National Insurance Company

* Genesis Indemnity Insurance Company

* Genesis Insurance Company

* General Reinsurance UK Limited

* Kolnische Ruckversicherungs-Gesellschaft AG

* General Reinsurance Australia Ltd

* General Reinsurance Africa Ltd.

* General Reinsurance Life UK Limited

* General Reinsurance Life Australia Ltd.

The ICR of "aa " has been affirmed for General Re Corporation.

The following debt ratings have been affirmed:

General Re Corporation--

-- "aa " on $150 million 9% senior unsecured debentures, due 2009

-- AMB-1 on commercial paper

The FSR has been upgraded to A (Superior) from A (Superior) and the ICR to "aa " from "aa-" for General Re Life Corporation.

The FSR of A- (Excellent) and ICR of "a-" have been affirmed for Idealife Insurance Company.

Founded in 1899, A.M. Best Company is a full-service credit rating organization dedicated to serving the financial services industries, including the banking and insurance sectors. For more information, visit www.ambest.com.