A.M. Best Affirms Rating of CIGNA Life Insurance Company of Europe S.A.-N.V.; Assigns Issuer Credit Rating.

OLDWICK, N.J. -- A.M. Best Co. has affirmed the financial strength rating of B++ (Very Good) and assigned an issuer credit rating of "bbb+" to CIGNA Life Insurance Company of Europe S.A.-N.V. (CLICE) (Belgium). The outlook for both ratings is stable.

The ratings reflect CLICE's excellent business position, stable capitalisation and a return to financial profitability. Offsetting these positive rating factors is the introduction of new products, which may lead to a higher combined ratio in the medium term to long term.

A.M. Best believes that CLICE's gross written premium is likely to continue growing at a combined rate of approximately 13% during 2006. However, the longer term prospects of the company will depend heavily on its ability to introduce new and differentiated products.

A.M. Best expects CLICE's risk-adjusted capitalisation to remain strong with any pressures arising from business growth likely to be absorbed through reinsurance to an affiliate. Counterparty risk will be reduced, as the reinsurance treaty with the non-rated affiliate continues to be transacted on a funds with-held basis. Financial performance is likely to remain strong, although A.M. Best believes that the introduction of new products could result in increased claims, with the loss ratio likely to increase from a low of 74.2% achieved in 2004. Persistency in the business written through the company's direct marketing channel remains a concern.

For Best's Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/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.