A.M. Best Affirms Rating of ING Canada.

Business Editors

OLDWICK, N.J.--(BUSINESS WIRE)--May 29, 2002

A.M. Best Co. has affirmed the financial strength rating of A+ (Superior) of ING Canada Group, Toronto, Ontario.

The group is comprised of the following members: The Commerce Group Insurance Company, ING Insurance Company of Canada, ING Western Union Insurance Company, ING Wellington Insurance Company, ING Novex Insurance Company of Canada, Belair Insurance Company Inc., and The Nordic Insurance Company of Canada.

This rating reflects ING Canada's excellent operating performance, its very strong level of capitalization and leading position in the Canadian property/casualty market. Its underwriting results have consistently outperformed the industry, relying on strong fundamentals including disciplined underwriting and pricing, efficient in-house claims handling and geographic diversification. In recent years, the group's regional diversification has allowed for consistency in underwriting results with favorable results in strong markets offsetting results in weaker markets. Additionally, ING Canada benefits from solid investment management expertise, as evidenced by its ability to produce strong returns despite difficult investment market conditions. Furthermore, A.M. Best views favorably the financial flexibility the group receives as a strategic subsidiary of ING Group NV, a global organization providing integrated financial products and services in over 60 countries.

Moreover, ING Canada's multiple distribution channels enable it to effectively distribute personal auto and property, commercial and specialty products across all markets. Its strong regional presence and expertise strengthen relationships with local brokers, securing its goal of remaining leaders in their geographic and product markets. ING Canada's direct writer, Belair Insurance Company, continues to expand direct sales of personal auto and property policies in selected markets, primarily through call centers, while ING Novex provides a market for group accounts.

In 2002, ING Canada acquired Zurich's personal lines, and both companies have concluded a strategic alliance whereby Zurich is now underwriting large corporate and commercial policies while ING will underwrite all other commercial risks. This has allowed ING Canada to assume the leading position in the Canadian property/casualty market with a 12% market share. The agreement increases the ING broker base, as Zurich brokers now distribute ING Canada's personal and small commercial products. ING Canada brokers will benefit by gaining a market for large commercial risks and U.S. exposures.

These strengths are partially offset by the challenges faced by ING Canada as it integrates the Zurich business. The current insurance regimes in its core business in Ontario, as well as the smaller markets of the Atlantic region and Alberta also constitute a challenge. However, A.M. Best notes ING Canada has been successful in integrating and managing acquired insurance portfolios and in generating substantial economies of scale.

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.