A.M. Best Keeps American Bankers Insurance Units Under Review Pending Examination of Operations.

OLDWICK, N.J.--(BUSINESS WIRE)--October 14, 1998--A.M. Best Co.'s ratings on the operating property/casualty and life affiliates of American Bankers Insurance Group remain under review following the announcement that its acquisition agreement with Cendant Corp. has been terminated.

The ratings will remain under review pending an in-depth evaluation of the company's operations, financial performance and the scheduled release of third-quarter 1998 financial results next week. While A.M. Best is concerned about the potential impact of business disruptions and lost growth opportunities that were caused by the anticipated merger, it views positively the break-up fee of approximately $400 million paid by Cendant. These funds will replace the $100 million break-up fee to former bidder, American International Group. The additional cash also improves American Bankers' financial flexibility, while providing funds to complete the acquisition of MS Diversified Corp., which is due to close in late October. American Bankers is an international wholesaler and marketer of specialty insurance products-predominantly in the credit life and health, property and unemployment lines-with access to financial and retail distribution channels, such as banks, retailers and consumer finance companies.

The action affects the following units: American Bankers Life Assurance Company of Florida, Bankers American Life Assurance Co. and Caribbean American Life Assurance Co., rated "A" (Excellent); American Bankers Insurance Co., American Reliable Insurance Co., Financial Insurance Exchange, Voyager Indemnity Insurance Co. and Voyager Property Casualty Insurance Co., rated "A-" (Excellent); Voyager Life Insurance Co. and Voyager Life & Health Insurance Co., rated "B+" (Very Good); and Caribbean American Property, rated "FPR 6" (Good). In addition, the following MS Diversified Corp. companies remains under review with developing implications: MS Casualty Insurance Co., rated "A-" (Excellent), MS Life Insurance Co., rated "B++" (Very Good), and MS Diversified Life Insurance Co. and Life Insurance Company of Mississippi, both of which carry Financial Performance Ratings of 5 (Good).

A.M. Best Co., established in 1899, is America's oldest and most widely recognized insurance rating and information source. For more information, visit A.M. Best's Web site at http://www.ambest.com.