A.M. Best Affirms Rating of CIGNA Life Insurance Company of Europe SA-N.V.

OLDWICK, N.J. -- A.M. Best Co. has affirmed the financial strength rating of "B++" (Very Good) and issuer credit rating (ICR) of "bbb+" of CIGNA Life Insurance Company of Europe SA-N.V. (CLICE) (Belgium). The rating outlook remains stable.

The rating reflects the company's strong capitalization, excellent business position and improving underwriting performance.

Strong capitalizationCoA.M. Best expects CLICE's risk-adjusted capitalisation to remain strong. Pressures arising from CLICE's expected premium growth are likely to be negated through the use of reinsurance. Counterparty risk arising from increased cessions to a non-rated affiliate is expected to remain stable as all new business is transacted on a funds withheld basis. The company is likely to return to a non-dividend paying policy after 2006, thus supporting its long term capitalization.

Excellent business positionCoA.M. Best expects the company's gross written premium to continue growing at an average combined rate of approximately 15% during 2006, due to the impact of recent distribution agreements. A.M. Best believes that the longer term prospects of the company depend heavily on its ability to introduce new and differentiated products in the highly competitive European life insurance market.

Improving underwriting performanceCoA.M. Best expects CLICE's combined ratio to stabilise at around 99% as a result of stable acquisition expenses, benefits from economies of scale and improved efficiency in the UK Health business. 2006 earnings are likely to be positively impacted by commission payments under reinsurance agreements.

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.