A.M. Best Comments on Ratings of XL Re Life America Inc.

OLDWICK, N.J. -- A.M. Best Co. has commented that the financial strength rating (FSR) of A- (Excellent) and issuer credit rating (ICR) of "a-" of XL Re Life America Inc. (XL Re Life) (Wilmington, DE) is unchanged following the announcement by SCOR Global Life U.S. Re Insurance Company (SGL U.S.), a wholly owned subsidiary of the SCOR Group, that it had reached a definitive agreement to acquire XL Re Life. XL Re Life is ultimately owned by XL Capital Ltd (Cayman Islands) [NYSE: XL]. The outlook for both ratings is stable.

The transaction with SGL U.S. is expected to close on September 30, subject to regulatory approval and normal closing conditions. The acquisition is valued at approximately $45 million, and the consideration is to be paid in cash. This transaction is consistent with XL Capital's strategic review of its life reinsurance operations, which were deemed to be non-core. SCOR's U.S. life reinsurance operations are currently rated A- (Excellent).

Should the transaction not be completed as expected, the FSR and ICR of XL Re Life may be downgraded to a rating level commensurate with its stand-alone profile.

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

The principal methodologies used in determining these ratings, including any additional methodologies and factors that may have been considered, can be found at www.ambest.com/ratings/methodology.

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.