A.M. Best Affirms Ratings of AXA Canada Inc.'s Insurance Subsidiaries.

Business Editors

A.M. Best Co. has affirmed the financial strength rating of A+ (Superior) for AXA Assurances Inc., Montreal, Quebec, and AXA Assurances Agricoles Inc., Montreal, Quebec.

In addition, A.M. Best has affirmed the financial strength rating of A (Excellent) for AXA Pacific Insurance Company, Vancouver, British Colombia, AXA Insurance (Canada), London, Ontario, Anglo Canada General Insurance Company, London, Ontario, and Insurance Corporation of Newfoundland Limited, St. John's, Newfoundland. A rating outlook of stable has been assigned to all these rated subsidiaries. These companies are part of AXA Canada Inc., a subsidiary of AXA S.A., Paris, France

Operating in Quebec, AXA Assurances Inc. and AXA Assurances Agricoles Inc. are the core property and casualty subsidiaries of AXA Canada Inc., the sixth-largest general insurance company in Canada. The rating for these two companies reflects their strong market presence in Quebec and their ability to achieve and sustain excellent underwriting and operating results. Their experienced management team is committed to maintaining disciplined underwriting standards and has demonstrated a continued focus on operating profitability. As a result, the loss ratio and profitability measures for these Quebec companies have historically outperformed industry averages. The rating also takes into consideration the companies' lead market position as one of the three largest property and casualty operations in Quebec. Their diverse product mix, sound underwriting practices, strong investment income and prudent utilization of reinsurance have enabled these companies to consistently generate favorable operating results.

Partially offsetting these rating strengths are the companies' higher than average expense structure and geographic concentration in Quebec, which subjects them to weather-related catastrophic risks. The companies will also be challenged in the near term by rising reinsurance costs attributed to a hardening reinsurance market.

The ratings for the other four subsidiaries reflect their strategic geographic role within AXA Canada Inc.'s operations. The rating difference is attributed to mixed operating results in these subsidiaries along with continued competitive pressures in the Canadian marketplace, which will further challenge profitability. AXA Pacific is used to service primarily the British Colombia and Alberta markets, while Insurance Corporation of Newfoundland concentrates on the Newfoundland region. AXA Insurance (Canada) writes predominantly in the Ontario and New Brunswick markets, and Anglo Canada serves to reinsure a portion of this business.

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.