A.M. Best Downgrades Ratings of Members of AXA Corporate Solutions.

Business Editors

OLDWICK, N.J.--(BUSINESS WIRE)--June 10, 2002

A.M. Best Co. has downgraded the financial strength ratings to A (Excellent) from A+ (Superior) of the members of AXA Corporate Solutions (AXACS), France.

Additionally, the ratings of AXA Corporate Solutions Insurance Company and AXA Corporate Solutions Excess and Surplus Lines Insurance Company, United States, have been lowered from A (Excellent) to A- (Excellent). The A (Excellent) financial strength rating of AXA Corporate Solutions Assurance, France, has been affirmed. All ratings have been placed under review with negative implications.

These rating actions follow the substantial deterioration in AXACS's consolidated operating performance and balance sheet strength in 2001 and the challenges associated with the restructuring exercise, which is currently being undertaken.

Significant deterioration in consolidated capital base -- At the end of 2001, AXACS's consolidated capital as measured on a risk-adjusted basis had fallen as a consequence of loss severity and deterioration in asset values. Management is actively introducing measures to reduce the overall risk exposure, and AXACS's ultimate parent has agreed to inject fresh capital by August 2002. The group is also reviewing a number of other options in a bid to further improve its prospective capital position.

Significant deterioration in consolidated operating performance -- The group reported a consolidated net loss of EUR 227 million (USD 201 million) in 2001. This was largely impacted by losses associated with the WTC (gross EUR 760 million) and a decline in investment returns.

Challenges associated with restructuring exercise -- Management is envisaging restructuring the group through a strategic separation into three distinct operating units by September 2002: reinsurance, direct and run-off management. This is a deviation from the original strategy but viewed as necessary to respond to market dynamics and to maximise profitability.

A.M. Best is closely monitoring developments within AXACS. The ratings are likely to remain under review until A.M. Best has additional information to enable it to discuss and further assess the group's financial results and capital position in addition to reviewing progress with regard to the restructuring plan.

The financial strength ratings of the following core members of AXA Corporate Solutions have been downgraded to A (Excellent) from A+ (Superior):

-- AXA Corporate Solutions S.A., France

-- SPS Reassurance, France

-- CGRM, Monaco

-- AXA Corporate Solutions Asia Pacific Pte Ltd., Singapore

-- AXA Corporate Solutions Reinsurance Company, United States

-- AXA Re Property and Casualty Insurance Company, United States

-- AXA Re America Insurance Company, United States

-- AXA Corporate Solutions Life Reinsurance Company, United States

-- AXA Corporate Solutions Lloyds Insurance Company of Texas, United States

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.