OVERVIEW.

A Note to Readers From Jack Snyder, Executive Vice President and Chief Rating Officer

Welcome to the 2000 edition of our annual Review/Preview report for the insurance industry. This publication is a corporate-wide effort that reflects our observations and opinions derived from our ongoing interaction with virtually every insurance company management team in the country--and increasingly, throughout the world--along with discussions with leading accountants, consultants and trade associations. This report reflects the official view of the A.M. Best Company

Our report details the key trends and impacts of the tremendous changes the insurance industry is now experiencing. This year, A.M. Best marks its 100th year as the leading source of information and rating opinions on the insurance industry. It is also a time of change at A.M. Best as our business evolves to respond to these industry dynamics. In just the past year we have:

* Introduced free, Internet-based ratings and reports available to insurance buyers anywhere in the world, covering every company and organization that we follow.

* Expanded our debt-rating service and issued debt ratings on a growing number of insurance company security issues.

* Increased our ability to assess insurers' financial exposures to catastrophic events, including announcing a partnership to develop and enhance catastrophe modeling capabilities; going forward, we plan to announce additional initiatives.

* Acquired additional business information companies in the United Kingdom and Canada. Through these two new subsidiaries, A.M Best International and A.M. Best Canada, our customers have access to the most comprehensive databases available on those regions.

* Introduced Best's Security Icon, which is available to all insurers rated Secure (B+ or higher). In addition to being an easily recognized symbol of financial strength, it also is interactive. When placed on an insurer's Web site, Best's Security Icon links directly to that company's free A.M. Best profile report.

* Assumed publication of the Captive Insurance Company Directory, the most comprehensive compendium for this important and growing industry segment of alternative risk transfer.

* Introduced Best's Viewpoint, a supplement to BestWeek. This new publication presents our commentary, analysis, statistical studies and Rating Monitor.

* Introduced Best's Qualified Rating coverage on HMO organizations and are now the leading rating agency in this important segment.

* Opened a new office in Hong Kong, providing us with regional rating operations on three continents.

We take our role as the insurance information source seriously and are committed to serving as the leading source for both information and financial strength ratings on insurers worldwide. Going forward, A.M. Best will continue to develop appropriate dynamic tools, and provide objective and value-added insights to a rapidly evolving industry.