A.M. Best Affirms London Life & Casualty Reinsurance Corporation Rating.

Business Editors

OLDWICK, N.J.--(BUSINESS WIRE)--Oct. 12, 2000

A.M. Best Co. has affirmed the A (Excellent) financial strength rating of London Life & Casualty Reinsurance Corporation, St. Michael, Barbados.

The rating reflects the company's strategic role for its ultimate parent, The Great-West Life Assurance Co., as the Barbados-based international reinsurance operation of the London Reinsurance Group. The rating also reflect the company's excellent capitalization, sound liquidity, adequate reserves and favorable overall operating results, as well as the company's strong market position in international reinsurance with a mix of finite, financial risk and traditional reinsurance products.

London Life & Casualty's excellent capitalization is supported by long-term operating profitability and highly skilled reinsurance professionals, which enables the company to develop a highly profitable reinsurance portfolio while maintaining a reasonable risk profile. The company's strong operating results demonstrate its sound underwriting discipline, efficient loss reserves and customer service. In addition to strong core operating results, the company has established its market position by securing successful, long-term relationships with direct clients and independent broker bases, mostly in United States with some in the United Kingdom and continental European markets.

Offsetting the positive rating factors is the increasing pressure on pricing and product capacity, along with the continued entry of new players in the international reinsurance market. The challenge for London Life & Casualty is to continue the successful development of the company's distribution channels in a competitive market offering little prospect for organic premium growth. The company has addressed these issues by targeting select niches in existing markets, expanding its specialty product range and strengthening client relationships while maintaining a steady focus on underwriting integrity.

London Life and Casualty is licensed under the Exempt Insurance Act of Barbados, which authorizes the company to carry out business anywhere in the world, except Barbados. The company provides property and casualty, life, annuity, and accident and health reinsurance products.

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.