A.M. Best Affirms and Assigns Ratings to General Fidelity Insurance and General Fidelity Life Insurance; Revises GFLIC's Outlook to Negative.

OLDWICK, N.J. -- A.M. Best Co. has affirmed the financial strength rating (FSR) of A- (Excellent) and the issuer credit rating (ICR) of "a-" of General Fidelity Life Insurance Company (GFLIC). A.M. Best has also affirmed the FSR of A- (Excellent) and has assigned an ICR of "a-" to General Fidelity Insurance Company (GFIC) (both of Charlotte, NC). The rating outlook for GFIC is stable, and the outlook for GFLIC has been revised to negative from stable. Both companies are directly owned by the Bank of America Insurance Group Inc, which is ultimately owned by Bank of America Corporation (NYSE: BAC).

The rating and outlook for GFIC reflects its excellent capitalization, which benefited from a $248 million equity infusion in November 2006. In 2005, management expanded the authority and scope of GFIC's business activity and began to pursue opportunities in direct and assumed reinsurance related to commercial general liability and warranty lines of business. Prior to 2005, GFIC had been profitably running off credit business that it stopped writing in 2001. While GFIC's near-term operating prospects appear to be favorable, its long-term operating performance will be largely determined by the successful execution of its business plan through different phases of the market cycle.

The revised outlook for GFLIC is due to its continued lack of new business activity and the continued negative premiums written over the last few years due to run off of the previous credit insurance business. A.M. Best expects GFLIC's business activity to materialize during 2007 and going forward. However, its risk-adjusted capitalization remains more than adequate relative to its investment and insurance risks despite the large dividend payments made in 2006.

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.