Best Places GE Frankona Group Ratings Under Review w/ Negative Implications

February 14, 2005

A.M. Best Co announced that it has placed the financial strength ratings of “A” (Excellent) of the operating companies of the GE Frankona Group under review with negative implications.

“This rating action follows the placement of its parent, Employers Reinsurance Corporation (ERC), under review with negative implications. (See related A.M. Best press release dated February 3, 2005.),” said the bulletin. “The ratings of GE Frankona Group are based on the financial support from the parent in the form of claims guarantees to each subsidiary. Consequently, a deterioration of ERC’s financial strength could have a negative impact on GE Frankona Group’s ratings.”

The under review status applies the following Group operating entities:
— GE Frankona Rueckversicherungs-AG
— GE Frankona Reinsurance A/S
— GE Frankona Reinsurance Limited
— GE Frankona Reassurance Limited
— GE ERC Strategic Reinsurance Limited
— Luxembourg European Reinsurance S.A.

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