Correction to January 24, 2005 Press Release: A.M. Best Affirms Financial Strength Rating of Winterthur Group; Assigns Issuer Credit Rating.

OLDWICK, N.J. -- A.M. Best Co. has affirmed the financial strength rating of A- (Excellent) of Winterthur Swiss Insurance Company (Switzerland) and its core subsidiary, Winterthur Life Insurance Company (Switzerland), collectively known as Winterthur Group (Winterthur). Concurrently, A.M Best has assigned an issuer credit rating of "a-" to the rated entities. The outlook on all ratings is stable.

The ratings reflect Winterthur's stabilisation of earnings, excellent capitalisation and the maintenance of a strong business profile in its core markets. An offsetting factor is the potential for additional reserving associated with its former subsidiary, Winterthur International.

Stabilising earnings--A.M. Best expects Winterthur's pre-tax earnings to stabilise in 2005 at between CHF 1.0 billion (USD 0.88 billion) and CHF 1.2 billion (USD 1.06 billion), reflecting the effect of the transfer of guarantees for the group life policies to employers and the continuous focus on non-life underwriting. Despite some softening of rates in its core markets, Winterthur's consolidated combined ratio is likely to remain at approximately 99%, partially driven by the execution of an expense reduction programme.

Strong business profile--A.M. Best anticipates Winterthur to maintain a strong position in its core markets, mainly Switzerland, Germany and Spain, but expects marginal or no growth in consolidated gross non-life premiums (approximately CHF 12 billion (USD 10.61 billion) for 2005) as some of these markets are mature and face increased competition, making further growth challenging. Consolidated life premiums are anticipated to grow marginally by approximately 1% to 2% in 2005, mainly from unit-linked policies as A.M. Best expects stable premiums from group life policies in Switzerland. The new taxation rules for life policies in Germany are likely to also negatively affect new business production.

Excellent capitalisation--Winterthur's excellent risk-adjusted capitalisation improved as expected. A.M. Best anticipates this level of risk-based capital to be maintained despite an increased exposure to lower quality bonds, increasing the potential for default risk.

Litigation claim--Winterthur may be required to establish additional reserves for a litigation issue arising from the sale of Winterthur International. The time frame is uncertain, but a negative ruling against Winterthur could have a negative impact on the ratings. A.M. Best is closely monitoring the issue.

For 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.