S&P Announces: GE Financial Assurance Holdings Inc. and Related Long-Term Ratings Placed on CreditWatch Neg.

Business Editors

NEW YORK--(BUSINESS WIRE)--Nov. 18, 2003

On Nov. 18, 2003, Standard & Poor's Ratings Services placed its 'A+' long-term counterparty credit rating on GE Financial Assurance Holdings Inc. (GE Financial) and its 'AA' long-term counterparty credit and financial strength ratings on GE Financial's wholly owned life insurance subsidiaries (collectively referred to as GEFA) on CreditWatch with negative implications.

At the same time, Standard & Poor's affirmed its 'A-1+' short-term counterparty credit rating on GE Life and Annuity Assurance Co. and its 'A-1+' short-term counterparty credit and financial strength ratings on General Electric Capital Assurance Co. (GE Capital). In addition, Standard & Poor's raised its commercial paper rating on GE Financial to 'A-1+' from 'A-1'.

These rating actions followed today's announcement that General Electric Co. (NYSE:GE) intends to pursue an IPO of a new company named Genworth Financial Inc., which will comprise most of GE's life and mortgage insurance operations.

Standard & Poor's placed the long-term ratings on GE Financial and GEFA on CreditWatch negative because of the uncertainty about the impact of the eventual elimination of GE's ownership and the benefit of the GE brand level on Genworth Financial's business position and financial flexibility. The current ratings on both GE Financial and its life insurance operations receive a notch of implicit support derived from its GE ownership.

The affirmations on the short-term ratings on GE Capital and GE Life and Annuity Assurance reflect the strengths of these core entities within GE Financial's life insurance operations and the expectation that the long-term counterparty credit ratings on these companies are not expected to fall below 'AA-'.

GE Financial, in its current structure, maintains significant market positions in both U.S. life insurance and mortgage insurance segments, with more than $97 billion in assets under management as of Sept. 30, 2003. GE Financial has a top-three market share in term-life and long-term care insurance based on sales and premiums in-force, respectively. In addition, GE Financial is a market leader in the U.S. mortgage insurance market. Genworth Financial is expected to benefit from the strong international mortgage insurance operations in Australia and Canada. Operating performance, specifically within the life insurance operations, is very strong because of favorable mortality and active spread management. Operational efficiency is strong and is expected to continue within Genworth Financial because of the operational discipline and risk-management capabilities inherent within its operations.

Outlook

Notwithstanding the concerns cited above, Standard & Poor's believes upon successful completion of the IPO, the ratings on Genworth Financial and its life insurance operating companies are not expected to be lowered below 'A/A-1' and 'AA-', respectively, because of the inherent prospective strengths of both operations.

Standard & Poor's will be meeting with the management of GE Financial and GE Capital on an ongoing basis to discuss the financial and strategic implications of the proposed transaction.

Ratings List
                                      TO                FROM
GE Financial Assurance Holdings Inc.
Counterparty credit rating            A+/WatchNeg/--    A+/Stable/A-1
Senior unsecured debt rating          A+/WatchNeg       A+
Commercial paper rating(1)            A-1+              A-1
(1)Guaranteed by General Electric Capital Corp.
General Electric Capital Assurance Co.
Counterparty credit rating            AA/WatchNeg/A-1+  AA/Stable/A-1+
Financial strength rating             AA/WatchNeg/A-1+  AA/Stable/A-1+
GE Life and Annuity Assurance Co.
Counterparty credit rating            AA/WatchNeg/A-1+  AA/Stable/A-1+
Financial strength rating             AA/WatchNeg       AA/Stable
First Colony Life Insurance Co.
GE Capital Life Assurance Co. of NY
GE Group Life Assurance Co.
American Mayflower Life Insurance Co. of New York
Counterparty credit rating            AA/WatchNeg/--    AA/Stable/--
Financial strength rating             AA/WatchNeg       AA/Stable