A.M. Best Affirms Ratings of The Family Guardian Insurance Company Limited.

OLDWICK, N.J. -- A.M. Best Co. has affirmed the financial strength rating of A- (Excellent) and issuer credit rating of "a-" of The Family Guardian Insurance Company Limited (Family Guardian) (Nassau, Bahamas). The outlook for both ratings is stable. Family Guardian is a wholly owned subsidiary of Famguard Corporation Limited (Famguard). Famguard is listed on the Bahamas stock exchange, BISX.

These rating actions are based on Family Guardian's very good risk-adjusted capitalization, profitable aggregate operations and expanded marketing presence in the Bahamas. Family Guardian continues to seek new business opportunities and is the second-largest life insurance company in the Bahamas. Trends in profitability and stockholders' equity continue to remain positive on a consistent basis, with growth in equity over the past five years despite dividend payments. Family Guardian's three core business segments, home service, financial services and group division led by BahamaHealth, provide business diversification and competitive advantages in a generally limited and mature marketplace.

Partially offsetting these positive rating factors are the weak operating results reported in 2007 from its financial services segment, the volatility and risk inherent in its health business, and high concentration of mortgage loans within its invested assets. The ratings also recognize the high level of competition in the Bahamas in Family Guardian's core business lines.

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

Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com.