A.M. Best Places Ratings of Excess Reinsurance Group Under Review with Negative Implications

Business Wire, March 28, 2008

OLDWICK, N.J. -- A.M. Best Co. has placed the financial strength rating of A- (Excellent) and issuer credit ratings of "a-" under review with negative implications for Excess Reinsurance Group (Excess Re) (Philadelphia, PA). The group is comprised of Excess Reinsurance Company (Delaware) and its wholly owned subsidiary, Guilderland Reinsurance Company (New York), both of which operate under a reinsurance pooling agreement. These rating actions follow the approval by Excess Re's Board of Directors of a definitive sales agreement, dated February 13, 2008.

The negative implications reflect the uncertainty regarding potential integration risks of future operations. The ratings will remain under review pending the close of the transaction, which is subject to shareholder and regulatory approval. In addition, A.M. Best will continue discussions with management regarding future business plans, which include anticipated integration and capital management strategies. The acquisition of Excess Re is expected to close by the end of second quarter 2008.

For current Best's Ratings, independent data and analysis on more than 330 reinsurance companies, please visit www.ambest.com/reinsurance

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.