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GERLING GLOBAL LIFE RECEIVES INITIAL BEST'S RATING

 OLDWICK, N.J., Sept. 13 /PRNewswire/ -- Effective immediately, Gerling Global Life Insurance Company, Toronto, Ontario, has received an initial Best's Rating of "A" (Excellent). This rating assignment reflects the insurer's position as a strategic subsidiary of Gerling- Konzern Versicherungs Beteiligungs AG, Cologne, Germany, as well as its strong capitalization, high-quality investment portfolio and improving levels of profitability.
 As a subsidiary of Gerling-Konzern, Gerling Global Life serves as the North American unit for the parent company's worldwide life reinsurance operations. Gerling-Kozern provides reinsurance capacity, thus reinforcing Gerling Global Life's ability to accept large risks. In addition, the parent has demonstrated its support and commitment for its Canadian-based life subsidiary by significantly strengthening that company's capital position through a CN$20 million (US$15.2 million) capital contribution this past June, which will enable the insurer to maintain a strong capital base as it continues its business expansion.
 Gerling Global Life's investment portfolio is of good quality, with only a modest amount of bonds in lower quality instruments. In addition, the company's mortgage portfolio presents minimal risk since the entire portfolio is insured by the Canada Mortgage and Housing Corp. The company does not invest in commercial mortgages or real estate.
 The rating considers Gerling Global Life's increasing sales in the Canadian direct individual life market, where it benefits from expense advantages due to its marketing through a brokerage distribution network. However, "There are a number of challenges facing the company as it diversifies its ordinary life portfolio from predominantly term life toward a series of universal life products," noted Larry G. Mayewski, senior vice president of Best's life/health division.
 The rating also acknowledges the pressures facing the insurer as it expands its niche position in the reinsurance market, where a large portion of its business consists of U.S. non-proportional accident and health risks. Offsetting this concern, though, is the company's success during the past several years in diversifying and improving the quality of its reinsurance risks.
 -0- 9/13/93
 /CONTACT: Rhonda J. Ruch of A.M. Best Company, 908-439-2200, ext. 5684/


CO: Gerling Global Life Insurance Company ST: Ontario IN: INS SU: RTG

TW -- NY023 -- 1160 09/13/93 09:47 EDT
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Publication:PR Newswire
Date:Sep 13, 1993
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