A.M. Best Comments on Ratings of Talanx AG and Haftpflichtverband der Deutschen Industrie V.a.G. Following Proposed Acquisition

Business Wire, July 18, 2007

OLDWICK, N.J. -- A.M. Best Co. has commented that the ratings of Talanx AG (Germany) and its rated subsidiaries, as well as the ratings of its ultimate parent, Haftpflichtverband der Deutschen Industrie V.a.G. (Germany), remain unchanged following the announcement of the proposed acquisition of 100% of the shares of BHW Lebensversicherung AG, BHW Pensionskasse AG, and the proposed acquisition of the remaining 50% of the shares of PB Lebensversicherung AG and PB Versicherung AG from Postbank AG for EUR 550 million.

A.M. Best believes that the acquisition will further strengthen Talanx's business profile in the German bancassurance market as it will provide the company with access to an additional distribution channel of BHW's financial advisor network. The transaction includes an extension to 15 years of the existing exclusive distribution agreements between Talanx and Postbank but will also increase Talanx's exposure to the German market.

A.M. Best believes that Talanx's risk-adjusted capitalisation remains excellent despite the negative impact of this transaction resulting from the expected high goodwill. This is due to the relatively high purchase price and the financing of the acquisition without additional equity prior to an IPO, i.e., by utilizing the existing credit facility.

A.M. Best expects that the company will now intensify its efforts for a major foreign acquisition in order to reduce its exposure to the domestic market. A.M. Best believes that this is likely to be financed through an IPO.

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.