Best Affirms A- (Excellent) Rating of World-Wide Reassurance Company

January 17, 2003

A.M. Best Co. announced that it has affirmed the financial strength rating of A- (Excellent) of World-Wide Reassurance Company Ltd. (WWR), a U.K. based subsidiary of Scottish Annuity & Life Holdings Ltd. (SALH) with a stable outlook.

Best also assigned the same rating to Scottish Annuity & Life Insurance Company Ltd. (Cayman) and Scottish Re (U.S.) Inc. (Delaware), WWR’s sister companies.

“The rating reflects WWR’s superior risk-adjusted capitalisation and funding flexibility, very good operating performance, leading business position in its niche sectors worldwide and excellent business diversification,” said Best. “Offsetting factors include the challenges associated with the scale of the company in the mature life reinsurance markets and its exposure in certain emerging markets.”

Best Said WWR’s “current capital base is sufficient to support the company’s normal business growth (30%-45% per annum) in the short to medium term,” but indicated that “WWR has no financial leverage,” and if business growth was more than average it could require additional capital from SALH.

While SALH is mainly a life insurance company, Best noted that WWR had a strong niche position as the “market leader in the loss of airline license business outside the United States and is a major reinsurer in selected emerging markets including the Middle East, Latin America and the Far East.”

Its total gross premiums written in the first 9 months of 2002 were around $51 million, a 70% increase over the same period in 2001. It’s “experienced approximately 45% annual compound growth in the last five years,” Best noted.

Best said it “expects that the after-tax profit will further improve in 2002. The company has an excellent investment and underwriting resilience to current market conditions as a result of portfolio diversification and a conservative investment strategy.”

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