A.M. Best Assigns Initial Rating to Compania Internacional de Seguros S.A.

Business Editors

OLDWICK, N.J.--(BUSINESS WIRE)--Oct. 7, 2002

A.M. Best Co. has assigned an initial financial strength rating of B++ (Very Good) to Compania Internacional de Seguros S.A. (IS) (Panama City, Panama).

The outlook is stable.

This rating is based on IS' financial strength, large market presence in Panama and the maintenance of good operating results. The company has a solid balance sheet, good capitalization and has demonstrated success in enhancing its competitive market position.

IS writes several lines of property/casualty (59% of GWP) and life and health coverages (41% of GWP). For over 90 years, IS has had a presence in the insurance industry in Panama. As the first insurance writer in the country, IS has a very good insurance business franchise in Panama as well as some presence in Central America. Over the years, IS has successfully positioned itself in an increasingly competitive market using underwriting expertise and customer service focus. Additionally, the company has built a favorable risk-adjusted capital level primarily as a result of its good earnings and limited asset risk.

Offsetting these positive rating factors are the sovereign and regulatory risks faced in Panama. Furthermore, IS must maintain its competitive edge over other well-positioned insurance providers by continuing to increase its sales penetration with existing clients' portfolios and by developing new and attractive product offerings.

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.