Fitch Lwrs Rtgs Of Jefferson-Pilot Group As Part of Industry Review.

Business Editors

CHICAGO & NEW YORK--(BUSINESS WIRE)--Sept. 19, 2002

Fitch Ratings has lowered the ratings of Jefferson-Pilot Corporation (Jefferson-Pilot) and its subsidiaries as part of a comprehensive industry review of all North American life insurance company ratings that was initiated on August 14, 2002, and completed today. The ratings affected by today's actions are listed below. Jefferson-Pilot represents one of 35 life insurance groups, making up approximately 42% of Fitch's ratings universe, that had ratings lowered as a result of the review. Jefferson-Pilot's Rating Outlook is Stable.

The industry review was the result of Fitch's belief that recent adverse performance within the investment markets required an accelerated recognition of certain industry trends that have been negatively impacting life insurers for some time. These trends, specifically unfavorable competitive pressures and product portfolio migration, have been inherent in Fitch's long-standing Negative Rating Outlook on the industry and, as a result of the review, have been fully considered into ratings generally. The review led to the establishment of higher standards for each rating category in many quantitative and qualitative areas of analysis.

Rating changes at the company level involved a reassessment of each insurer's fundamental characteristics relative to Fitch's new ratings standards. This included a review of the company's product risk profile and fundamental competitive and operating characteristics, and a review of the company's capital position (risk-based capital ratios, financial leverage and capital size), among numerous other factors. Fitch also looked closely at recent and anticipated investment performance under current adverse capital markets conditions.

For Jefferson-Pilot, the rating action was driven by several factors including Fitch's tightened qualitative and quantitative criteria for each rating category, especially at the higher categories to align with our prospective industry views. The enhanced criteria includes statutory capital guidelines, a significant position in traditional life reserves and Fitch's belief that it will be difficult for stock companies to operate within 'AAA' parameters on a prospective basis. With the tightened criteria, Fitch's two highest rating categories ('AAA' and 'AA+') are elite categories that few insurers will be able to achieve.

The ratings also continue to reflect Jefferson-Pilot's strong business momentum and competitive position with diversified distribution in the life insurance and fixed annuity markets, strong capitalization, very high profitability, moderate financial leverage targets, and a high-quality liquid investment portfolio.

Entity/Issue/Type/Action/Rating/Outlook

Jefferson-Pilot Corporation

-- Long-term rating, Lowered to 'AA-' from 'AA'/Stable;

-- Senior debt rating Lowered to 'AA-' from 'AA'/Stable;

-- Short-term rating Affirmed at 'F1+';

-- Commercial paper rating Affirmed at 'F1+'.

Jefferson-Pilot Capital Securities

-- Capital securities Lowered to 'A+' from 'AA-'/Stable.

Jefferson-Pilot Life Insurance Co.

-- Insurer financial strength rating Lowered to 'AA+' from

'AAA'/Stable.

Jefferson Pilot Financial Insurance Co.

-- Insurer financial strength rating Lowered to 'AA+' from

'AAA'/Stable.

Jefferson Pilot LifeAmerica Insurance Co.

-- Insurer financial strength rating Lowered to 'AA+' from

'AAA'/Stable.