S&P Upgrades Fireman’s Fund Insurance Rating to AA-

Standard and Poor’s (S&P) Ratings Services raised its rating for Fireman’s Fund Insurance Co. from “A+” to “AA-.” S&P noted that the upgrade reflects its enhanced view of the strategic position of Fireman’s Fund to its parent, the higher-rated Allianz SE.

“We believe we are well-positioned for the future and are taking steps to further grow our business profitably,” said Mike LaRocco, president and CEO of Fireman’s Fund.

Major rating factors according to S&P include:
-“Fireman’s Fund, with total assets of $11.4 billion as of June 30, 2008, maintains a strong and somewhat unique business profile. The insurer offers differentiated and specialized commercial insurance offerings, as well as customized personal insurance (auto/home/valuable articles) solutions for the affluent marketplace. In addition, Fireman’s Fund is also a leading crop reinsurer in the U.S.”

-” The insurer eliminated all surplus relief reinsurance in 2005, and paid all remaining intercompany promissory notes back to its parent as a dividend in 2006. Both actions significantly improved the quality of the capital base.”

-“Fireman’s Fund maintains a strong enterprise risk management framework in conjunction with parent Allianz SE which aims to optimize earnings and maintain strong capital strength.”

The rating outlook is negative based primarily on factors facing the insurance sector, commodity pricing and the economy overall.

More information can be found at www.standardandpoors.com.