A.M. Best Downgrades Ratings of American General Holdings Group and Delphi Casualty Company

Business Wire, June 10, 2008

OLDWICK, N.J. -- A.M. Best Co. has downgraded the financial strength rating (FSR) to C (Marginal) from B (Fair) and issuer credit ratings (ICR) to "b" from "bb" for American General Holdings Group (American General) and its member, Apollo Casualty Company. Concurrently, A.M. Best has downgraded the FSR to C (Marginal) from B- (Fair) and ICR to "b" from "bb-" of American General's separately rated affiliate, Delphi Casualty Company (Delphi Casualty). All companies are domiciled in Des Plaines, IL. The outlook for all ratings has been revised to negative from stable.

These rating actions reflect American General's deteriorated capital position, elevated underwriting leverage, significant debt servicing requirements and limited business profile. As a result of large dividend payments to its holding company, American General Holdings, Inc. and deteriorated operating results, American General's surplus has declined significantly since 2007. The rating outlook reflects the ongoing challenges faced by management based on its need to balance American General's underwriting plans and debt servicing against its risk-adjusted capital requirements.

The downgrading of Delphi Casualty's ratings recognizes its reduced capital position, limited business profile and operating experience, combined with aggressive premium growth in recent years.

For Best's Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings.> Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com.