A.M. Best Assigns Rating to Aetna Life & Casualty -Bermuda- Ltd.

OLDWICK, N.J. -- A.M. Best Co. has assigned a financial strength rating of A- (Excellent) to Aetna Life and Casualty (Bermuda) Ltd. (AL&C) (Bermuda). The rating outlook is stable.

The rating reflects AL&C's favorable earnings, its excellent stand-alone capitalization and the financial strength of its ultimate parent, Aetna Inc. (Aetna) (NYSE: AET) (Hartford, CT). Offsetting factors include A.M. Best's anticipation of a modest decline in AL&C's risk-based capital ratios during the medium term, driven by increased sales.

Aetna continues to generate excellent financial returns and improve its financial fundamentals. A.M. Best expects these trends to continue during the medium term, albeit more modestly, given pricing competition in the industry. Furthermore, A.M. Best believes AL&C's favorable earnings trend is also expected to continue during the medium term, growing the firm's surplus.

AL&C, currently a writer of Aetna's expatriate business, is expected to expand its product lines to serve overseas nationals in addition to further expansion of its domestic expatriate business. In conjunction with this expansion, A.M. Best anticipates premium growth could outpace surplus growth, reducing the firm's excellent risk-based capital ratio.

Aetna has successfully completed a strategic and financial turnaround and also maintains conservative financial leverage, high quality invested assets and excellent financial flexibility.

For current Best's Ratings, independent data and analysis on more than 1,050 health companies and more than 130 HMO industry composites, please visit http://www.ambest.com/health/.

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.