A.M. Best Affirms, Upgrades and Assigns Ratings to Desjardins Group Subsidiaries.

Business Editors

OLDWICK, N.J.--(BUSINESS WIRE)--June 6, 2002

A.M. Best Co. has affirmed the public data rating (pd) of A-pd of Assurances Generales des Caisses Desjardins, Quebec, and has upgraded the public data rating to A-pd from B++q of Personal General Insurance Company, Quebec. In addition, A.M. Best has assigned a public data rating of B+pd to Personal Insurance Company of Canada, Mississauga, Ontario. The three companies are part of Desjardins Group, the largest financial services institution in Quebec providing a wide range of financial products including property/casualty and life insurance.

The rating of Assurances Generales des Caisses Desjardins reflects its very strong level of capitalization, operating results and leading market position in Quebec. The company's loss ratio and profitability measures historically have outperformed industry averages. These strengths are partially offset by recent adverse development on loss reserves and its concentration of business in Quebec.

The rating of Personal General Insurance Company, formerly La Securite Assurances Generales, reflects its excellent level of capitalization and operating results, which have outperformed the industry. Partially offsetting these strengths is its concentration in Quebec.

The rating of Personal Insurance Company of Canada (acquired from CIBC in 2000) reflects Desjardins' expansion into markets outside of Quebec. Offsetting these are the company's declining capitalization, unfavorable operating results and adverse loss development.

In addition, A.M. Best has assigned a public data rating of A-pd to Desjardins Financial Security (DFS), a large life insurance operation within Desjardins Group. The rating of DFS reflects its favorable capitalization, consistent profitability and leading market position in Quebec. DSF is the result of the merger of Desjardins-Laurentian Life Assurance Company and Imperial Life Assurance Company of Canada. Although it derives the majority of its earnings from Quebec, it is now positioned for future earnings growth in Ontario and other provinces.

A pd rating is an A.M. Best opinion rating of the long-term financial strength of an insurer or reinsurer. The rating is expressed using the same rating scale and definitions as an A.M. Best interactive rating of long-term financial strength, but a pd rating modifier has been added to ensure the user is aware of the more limited information basis for the rating. The pd rating does not reflect the detailed interviews of senior management and access to non-public data and other information, which plays a significant role in the interactive rating analysis. A.M. Best interactively rates the majority of insurers in Canada. Best's Public Data Ratings are replacing Best's Qualified Ratings.

A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. For more information, visit A.M. Best's Web site at www.ambest.com.