A.M. Best Affirms Rating of AXA Corporate Solutions Group.

Business Editors

OLDWICK, N.J.--(BUSINESS WIRE)--Aug. 29, 2001

A.M. Best Co. has affirmed the financial strength rating of A+ (Superior) for AXA Corporate Solutions Group.

The rating for AXA Corporate Solutions Group applies to the following companies based on their consolidation into the group:

-- Parent company, AXA Corporate Solutions SA, France, and its branch offices

-- AXA Cessions, France

-- SPS Reassurance, France

-- CGRM, Monaco

-- AXA Corporate Solutions Asia Pacific Pte Ltd., Singapore, and its branch
offices

-- AXA Corporate Solutions Reinsurance Company, United States

-- AXA Re Property and Casualty Insurance Company, United States

-- AXA Re America Insurance Company, United States

-- AXA Corporate Solutions Life Reinsurance Company, United States

In addition, group member AXA Corporate Solutions Assurance, France, was assigned an initial A (Excellent) rating, and the A- (Excellent) rating of AXA Corporate Solutions Insurance Company, United States, was raised to A (Excellent). The A- (Excellent) rating of AXA Corporate Solutions Excess and Surplus Lines Insurance Company, United States, was affirmed. The A+ (Superior) rating of AXA Reinsurance UK was withdrawn and replaced with a rating of NR-5 (Not Formally Followed), as the company ceased underwriting new business, and renewal business was transferred to AXA Corporate Solutions Assurance UK Branch.

These group companies are integral to AXA Corporate Solutions' overall strategy and critical to its success. They are material contributors to its market profile, operating performance and financial strength. In addition, the group rating reflects the centralized underwriting control and integrated operation of AXA Corporate Solutions SA's subsidiaries, which receive capital support and operate as a single unit in terms of underwriting capacity and capabilities.

The rating reflects AXA Corporate Solutions Group's superior capitalization, highly focused operating strategies, strong business profile and financial backing of the AXA Group. The group has taken an innovative business approach through the implementation of a new model, which breaks the traditional boundaries of global risk insurance and reinsurance while taking into account each client's major exposures. The rating also acknowledges AXA Corporate Solutions Group's disciplined underwriting, sound operating fundamentals and long-standing customer and producer relationships. The group follows a profit-oriented strategy, providing broad product capabilities, large lines capacity and the ability to take lead positions while quoting and dictating terms. The quality of capital is considered superior based on consistency of earnings and cash flow, stable balance sheet, conservative leverage measures and reserve adequacy. Net income and the combined ratio improved in both the insurance and reinsurance business segments.

Partially offsetting the positive rating factors are competitive challenges from monoline and multiline insurers and reinsurers entering the corporate solutions market, creating pressure on the group to maintain market share. In addition, historically poor underwriting performance from the insurance members of the group have depressed consolidated technical results while requiring equity and reserve strengthening. Tight control of aggregates and pricing decisions have now been implemented for these subsidiaries, but some uncertainty remains with regard to future performance of this business as well as its complete and successful integration into the group's overall operations. Insurance premium volume is expected to decrease further in 2001 as the portfolio continues to be purged of unprofitable business. The rating level difference between insurance and reinsurance units is attributable to contrasting historical performances, divergent operating results and future profitability challenges in different competitive environments. Finally, the group has not yet completed its planned implementation of a single, worldwide management information system.

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.