A.M. Best Assigns Ratings to Travelers Insurance Company's Funding Agreement-Backed Securities Programs.

OLDWICK, N.J. -- A.M. Best Co. has assigned ratings of "aa" to the two funding agreement-backed securities (FABS) programs established by The Travelers Insurance Company (TIC). A.M. Best has also assigned debt ratings of "aa" to the outstanding notes issued under TIC's European Medium-Term Notes (EMTN) and Global Medium-Term Notes (GMTN) programs. All ratings have a stable outlook.

Additionally, A.M. Best has assigned issuer credit ratings (ICRs) of "aa" to TIC and its subsidiary, The Travelers Life & Annuity Company (together, known as Travelers Life & Annuity), both of which are currently subsidiaries of Citigroup, Inc. (NYSE: C). In January 2005, Citigroup announced an agreement to sell Travelers Life & Annuity to MetLife, Inc. (New York, NY) (NYSE: MET); the transaction is expected to close this summer. Unless otherwise noted, the above companies are located in Hartford, CT. These ratings have a stable outlook.

The ratings reflect Travelers Life & Annuity's strong competitive position in its chosen markets and favorable operating trends. On a stand-alone basis, these companies maintain superior risk-adjusted capitalization supported by continued strong operating profitability and excellent liquidity. Even with the proposed sale to MetLife, Travelers Life & Annuity is expected to sustain its favorable earnings power and diversified business platform.

Through its $7 billion EMTN program initially established in 1998, TIC has issued various series of notes to institutional investors on an opportunistic basis. The notes are denominated in various currencies, including U.S. dollars, Swiss francs, Japanese yen, Pounds sterling, Euros, and Australian dollars. The issuer of the notes is a Jersey, Channel Islands limited liability company, Travelers Insurance Company Institutional Funding Limited.

TIC has also issued notes selectively through its $5 billion GMTN program, Travelers Life & Annuity Global Funding I, a Delaware statutory trust established in 2004. Under both programs, the issuer uses the proceeds from the sale of each series of notes to purchase one or more funding agreements from TIC, which is domiciled under the laws of the state of Connecticut. Payments of principal and interest on the notes are and will be made solely from the proceeds of the applicable funding agreements.

Based on A.M. Best's analysis of the FABS structures utilized by TIC, the programs and notes will carry TIC's ICR of "aa". This reflects that each series of notes is secured by a first priority perfected security interest in the underlying funding agreements, which are unsecured obligations of TIC's general account. In addition, in the event of an insolvency of a Connecticut insurance company, claims under each funding agreement would be accorded a priority in liquidation equal to that of TIC's policyholders (i.e. would rank pari passu). Therefore, in assigning the above ICR, A.M. Best believes that all investors in TIC's FABS are exposed to the inherent credit, liquidity and business risks of the sponsoring insurance company, TIC.

For a complete listing of Travelers Life & Annuity's debt and financial strength ratings as well as a list of issuances under its FABS programs, please visit http://www.ambest.com/press/051004travelers.pdf.

For Best's Debt Ratings, all other Best's Ratings, an overview of the rating process and rating methodologies, please visit http://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 http://www.ambest.com.