A.M. Best Affirms Ratings of Primerica Life Insurance Company and Its Subsidiaries

Business Wire, May 15, 2008

OLDWICK, N.J. -- A.M. Best Co. has affirmed the financial strength rating (FSR) of A (Superior) and issuer credit ratings (ICR) of "aa" of Primerica Life Insurance Company and its subsidiaries, National Benefit Life Insurance Company and Primerica Life Insurance Company of Canada (collectively known as Primerica Life). The outlook for all ratings is stable. These companies are indirect insurance subsidiaries of Citigroup, Inc. (Citigroup) (Delaware) (NYSE: C), one of the world's largest financial services companies with consolidated assets of approximately $2.2 trillion as of December 31, 2007.

The ratings of Primerica Life reflect its continued strong profitability, leading position in the U.S. term life insurance marketplace, strong risk-adjusted capitalization and favorable liquidity profile. Primerica Life is one of the largest writers of term life insurance in the United States, and its strong market position is attributable to its dedicated distribution affiliate, Primerica Financial Services, Inc. (PFS). This integrated distribution and operating platform includes nearly 100,000 life agents and is the primary driver of the insurance unit's excellent operating performance.

Partially offsetting these strengths is Primerica Life's operational concentration in commodity term life insurance products and the competitive challenges inherent in the U.S. individual insurance market. Primerica Life's focus on term life insurance products results in concentration risk, as this product line is price-sensitive and profits primarily are based on mortality gains. Additionally, A.M. Best believes that the company's reliance on part-time agents and the accompanying high turnover rates heighten the company's exposure to market conduct risks.

A.M. Best also notes that there is the potential for Primerica Life to be sold, as Citigroup has announced plans to shed $400 billion in assets within the next three years. Primerica Life is part of Citigroup's Consumer Banking segment, which has been targeted for a significant portion of the asset sales. If Primerica Life were to be sold, future rating actions will reflect, among other things, the relative financial strength of the acquiring organization, its post acquisition risk-based capital levels and the materiality of its revenue and earnings contributions to its new parent.

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.