Business: A.M. Best affirms ratings of credit & gGeneral iInsurance limited

Oldwick, N.J. (BUSINESS WIRE) - A.M. Best Co. has affirmed the financial strength rating of A-(Excellent) and issuer credit rating of "a-" of Credit & General Insurance Limited (CGIL) (New Zealand).

The outlook for both ratings is stable.

The ratings reflect CGIL's conservative risk-adjusted capitalization, consistent operating performance and strong liquidity. The ratings also consider the company's exclusive distribution arrangement with the Farmers retail chain, one of the largest retail department stores in New Zealand.

CGIL's low claims experience and cautious expense control resulted in continual emergence of underwriting earnings in 2008. CGIL lowered its expense ratio to 37.3% in 2008 from 45.9% in 2007 due primarily to the reduction in acquisition costs. Its insurance book continued to record a favorable loss experience, although the overall premium volume on an absolute basis remained relatively small.

Strong underwriting performance along with a stable investment yield led to a consistent surplus growth, translating into a further improvement in CGIL's risk-adjusted capitalization in 2008. Best's Capital Adequacy Ratio (BCAR), which measures capitalization on a risk-adjusted basis, reflects that the company maintained a solid capital position supportive of its ratings. In view of CGIL's stable operating profitability and moderate business growth, A.M. Best anticipates that the company will maintain a relatively conservative level of risk-adjusted capitalization in the near term.

CGIL's investment portfolio was liquid, with cash and money market deposits representing more than 95% of its assets at year-end March 2008. Investment assets to total liabilities increased to 13.4 times in 2008 from 10.9 times in 2007. A.M.
Best anticipates CGIL's investment portfolio to remain conservative and highly liquid in the near term.

Offsetting rating factors include CGIL's business concentration risk in the consumer credit sector and limited insurance growth prospects.

CGIL's operating results are subject to the performance of the economy and consumer credit market in New Zealand.

Given that CGIL predominantly relies on Farmers as its core distribution channel, the company's business growth is heavily dependent upon the operating performance of Farmers' retail business. CGIL's narrow product range, along with concentration risk in its distribution channel, could limit its growth prospects.

For Best's Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings.

Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial
and health care service industries, including insurance companies, banks, hospitals and health care system providers.
For more information, visit www.ambest.com.

A.M. Best
Analysts
Billy Wong, +852-2827-3414 billy.wong@ambest.com
or Terrence Wong, +852-2827-3403 terrence.wong@ambest.com
or Public Relations
Jim Peavy, +(1) 908 439 2200, ext. 5644
james.peavy@ambest.com
or Rachelle Morrow, +(1) 908 439 2200, ext. 5378
rachelle.morrow@ambest.com

Insurance: A.M. Best affirms ratings of consumer insurance services limited

Oldwick, N.J. (BUSINESS WIRE) - A.M. Best Co. has affirmed the financial strength rating of A- (Excellent) and issuer credit rating of "a-" of Consumer Insurance Services Limited (CISL) (New Zealand). The outlook for both ratings is stable.

The ratings reflect CISL's consistent operating profitability and improvement in risk-adjusted capitalization.

The ratings also acknowledge CISL's operational synergy derived from the financing activities of Fisher and Paykel Finance Limited (F&P Finance).

A reduction in underwriting risk as a result of a fall in net premiums written led to an increase in CISL's risk-adjusted capitalization, as measured by Best's Capital Adequacy Ratio (BCAR), for the year ended March 2008.

Nonetheless, CISL's capital and surplus on an absolute basis recorded a slight improvement of 2.3% to NZD 5.3 million in 2008.

CISL continued to sustain its solid operating profitability through maintaining favorable claims experience and growing its administrative earnings. Despite the decrease in direct insurance business, income from administrative warranty grew to NZD 1.9 million (USD1.5 million) for fiscal year 2008, representing 57.8% of the company's pre-tax operating income.
CISL produced an overall net income of NZD 2.2 million (USD1.8 million), equivalent to a 41.8% return on equity. With the emergence of warranty income and stable claims experience, CISL is expected to maintain sound operating results in the near term, although the expense ratio will remain relatively high.

Offsetting rating factors include CISL's business concentration risk in the consumer credit market, decline in business volume and high dividend payout requirement.

Given CISL's primary focus in the consumer credit insurance product, its underwriting result is heavily dependent on the consumer credit market's profile. A change in payment method of the underlying loan led to a 24.1% decline in direct insurance business in 2008. A further shift in consumer loan payment preference could potentially translate into earnings volatility for CISL going forward, although the company has plans to launch a new initiative to diversify its income sources.

As a result of the high dividend payout requirement by its parent, CISL paid 97.9% of the company's net earnings over the
past five years, greatly limiting its internal surplus growth.

Nonetheless, A.M. Best believes that F&P Finance will provide ongoing capital support to CISL should the business need arise.

For Best's Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings.

Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers.
For more information, visit www.ambest.com.

A.M. Best Co.
Analysts
Billy Wong, +852-2827-3414 billy.wong@ambest.com
or Terrence Wong, +852-2827-3403 terrence.wong@ambest.com
or Public Relations
Jim Peavy,+(1) 908-439-2200, ext. 5644
james.peavy@ambest.com
or Rachelle Morrow,+(1) 908-439-2200, ext. 5378
rachelle.morrow@ambest.com

Business: A.M. Best affirms ratings of Hang Seng Life Limited

Assigns ratings to Hang Seng Insurance Company Limited

Oldwick, N.J. (BUSINESS WIRE) - A.M. Best Co. has affirmed the financial strength rating of A+ (Superior) (FSR) and the issuer credit rating (ICR) of "aa-" of Hang Seng Life Limited (HSL) (Hong Kong). The outlook for both ratings is stable.

Subsequently, A.M. Best has withdrawn both ratings and assigned a category NR-3 (Rating Procedure Inapplicable) to HSL in response to the sale of 100% of its shareholdings, as well as the transfer of its entire life insurance portfolio to Hang Seng Insurance Company Limited (Hang Seng Insurance) (Hong Kong) effective November 19, 2007.

Concurrently, A.M. Best has assigned an FSR of A+ (Superior) and an ICR of "aa-" to Hang Seng Insurance. The outlook for these ratings is stable.

The ratings are based on an analysis of the long-term business of Hang Seng Insurance. The assigned ratings reflect the company's improved market presence, adequate level of risk-adjusted capitalization and historically profitable operating performance. The ratings also recognize the company's secured distribution capabilities gained from its immediate parent, Hang Seng Bank.

Hang Seng Insurance has strengthened its position in its designated market, despite increased market competition in the local life insurance industry. The company captured a 6.2% share of the direct in-force individual life market in 2007, compared to 5.8% in 2006.

Being a wholly owned subsidiary of Hang Seng Bank, the company is capable of accessing the mass market through the banking branches of its parent. Hang Seng Insurance recorded a robust new business growth of 29% in its non-linked regular contribution products in 2007. Ongoing distribution support of the parent is expected to enable the company to sustain its
business growth going forward.

Overall operating performance has improved over the past five years. In addition to a relatively stable lapse and favorable mortality experiences, strong investment earnings have contributed favorably to Hang Seng Insurance's overall operating profitability during the same period. Operating efficiency has improved through achieving greater economies of scale due to the growth of its insurance book. Embedded value grew by 20.6% in 2007 from the prior year. A.M. Best expects that the company's premium growth momentum and consistent investment earnings will further enhance its embedded value.

These strengths are partly offset by the increased pressure on risk-adjusted capitalization. Sustained business growth led to a considerable increase in asset size, in particular equities investment for 2007, which placed considerable stress on Hang Seng Insurance's risk-adjusted capitalization, although it remains at a level commensurate with its ratings. Further strengthening of the company's capitalization on a risk-adjusted basis is essential for its future business growth.

Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers.
For more information, visit www.ambest.com.

A.M. Best Co.
Analysts
Stella Ng, +852-2827-3407 stella.ng@ambest.com or Terrence
Wong, +852-2827-3403 terrence.wong@ambest.com
or Public Relations
Jim Peavy, +(1) 908 439 2200, ext. 5644
james.peavy@ambest.com
or Rachelle Morrow, +(1) 908 439 2200, ext. 5378
rachelle.morrow@ambest.com

Business: A.M. Best revises rating outlook to positive for farmers' mutual

Oldwick, N.J. (BUSINESS WIRE) - A.M. Best Co. has revised the outlook to positive from stable for the ratings of Farmers' Mutual Group (formerly Farmers' Mutual Insurance Association)(FMG) (New Zealand) and its core subsidiary, FMG Insurance Limited (FMGIL) (New Zealand).
Concurrently, A.M. Best has affirmed FMG's and FMGIL's financial strength rating of A- (Excellent) and issuer credit rating of "a-".

The rating affirmations reflect FMG's adequate capitalization, stable growth and good business retention. The ratings also consider the positive impact on risk-adjusted capitalization, as measured by Best's Capital Adequacy Ratio (BCAR), of FMG's continued reorganization of business.

The revision of the group's rating outlook reflects its stable earnings prospects and the expected growth in its risk-adjusted capitalization.

FMG's risk-adjusted capitalization exhibited reasonable growth during the year, due mainly to the positive group operating performance. FMG's combined ratio remained above 100% due predominantly to weather-related claims; however, its operating results remain profitable due to good investment returns. The rating recommendation is supported by FMG's adequate BCAR.

FMG's historical ties with regional New Zealand have contributed to good persistency in its underwriting portfolio and have resulted in it retaining a relatively stable share of its chosen market. The group's gross premium increased by 8.6% in 2008.

The decision to focus on the New Zealand general insurance business has resulted in asset sales, with income from the sale of assets and the transfer of risk (as a result of the sale of its businesses) substantially strengthening the group's BCAR.

These positive factors are partially offset by FMG's exposure to weather-related catastrophes, volatile underwriting performance and high expense ratio.

FMG's cost structure has been slightly higher than that of the market, partly as a function of its direct distribution model. As FMG covers approximately 3% of the New Zealand market, achieving greater economies of scale will increase the company's competitiveness going forward.

Increasing competition in rural insurance markets continues to exert pressure on FMG's profits. Further, similar to other insurance companies in New Zealand, the increase in premium rates has not kept pace with rebuilding costs, thus resulting in ever increasing loss ratios. Despite FMG's net assets being reasonably well protected by its reinsurance programs, it has experienced underwriting losses mainly due to weather-related events in the past two years.

Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers.
For more information, visit www.ambest.com.

A.M. Best Co. AnalystsPhilip Chung, CFA+852-2827-3409 philip.chung@ambest.comTerrence Wong, +852-2827-3403 terrence.wong@ambest.com or Public RelationsJim Peavy, +(1)
908-439-2200, ext. 5644 james.peavy@ambest.comRachelle Morrow,
+(1) 908-439-2200, ext. 5378 rachelle.morrow@ambest.com

Insurance: A.M. Best assigns ratings to Ansvar Insurance Limited

Oldwick, New Jersey (BUSINESS WIRE) - A.M. Best Co. has assigned a financial strength rating of A-(Excellent) and an issuer credit rating of "a-" to Ansvar Insurance Limited (Ansvar) (Australia). The outlook assigned to both ratings is stable.

The ratings reflect Ansvar's adequate stand-alone risk-adjusted capitalization and conservative investment philosophy. The ratings also recognize the company's niche focus in the faith, education, care and charity sectors, as well as its unique distribution strategy.

Ansvar's risk-adjusted capitalization, as measured by Best's Capital Adequacy Ratio (BCAR), is commensurate with its assigned rating, although the BCAR has weakened over the past financial year. The company's net premium leverage strengthened slightly due to profitable operating earnings contributing to net surplus and to the decline in net premiums written in 2007.

The company's conservative investment portfolio of predominantly cash and bonds has contributed to a stronger BCAR. New investments in equities (3.1 per cent of invested assets) and the increase in reserves caused the moderate deterioration of Ansvar's BCAR; however, A.M. Best anticipates strengthening in the company's risk-adjusted capitalization.

Good business persistency, especially in the commercial property line, can be attributed to Ansvar's close relationship with clients, whereby Ansvar maintains a direct relationship, but clients continue to place their insurance through brokers.

Offsetting rating factors include the impact of softening premium rates in Ansvar's major business lines, its moderate market position and uncertain liability exposure.

Although Ansvar has remained profitable throughout the five years under review, the trend of operating profits has exhibited negative growth.

Market competition has seen continued softening of premium rates, especially in commercial lines, which could challenge the company's ongoing underwriting profitability. A.M. Best expects that Ansvar's underwriting performance will remain profitable in the near term, albeit at a more modest level.

Ansvar's overall reserving policy is considered prudent. Nonetheless, higher than normal uncertainty exists on the ultimate exposure from special issues risk.

Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers.
For more information, visit www.ambest.com.

A.M. Best Co. Analysts Philip Chung, CFA, +852-2827-3409
philip.chung@ambest.com
or Terrence Wong, +852-2827-3403 terrence.wong@ambest.com
or Public Relations Jim Peavy,+(1) 908-439-2200, ext. 5644
james.peavy@ambest.com
or Rachelle Morrow,+(1) 908-439-2200, ext. 5378
rachelle.morrow@ambest.com

Insurance: A.M. Best assigns stable outlook to pioneer insurance Co Ltd

Oldwick, New Jersey (BUSINESS WIRE) - A.M. Best Co. has affirmed the financial strength rating (FSR) of B (Fair) and the issuer credit rating (ICR) of "bb" of Pioneer Insurance Company Limited (Pioneer) (New Zealand). The ratings have been removed from under review with developing implications and assigned a stable outlook.

These rating actions follow the NZD 8.4 million (USD 6.6 million) injection of funds over the past year, of which NZD 2.523 million (USD 1.98 million) was in the form of convertible capital notes. The ratings also reflect the substantial operation, management and corporate governance improvements that Pioneer's new owner, the New Zealand Association of Credit Unions, has effected.

A.M. Best remains cautious of Pioneer's ability to maintain its current weak business profile in light of the strong competition within its market niche. Nonetheless, A.M. Best expects Pioneer will maintain a favorable risk-adjusted capitalization and operating performance relative to its current rating level.

For Best's Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings.

Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers.
For more information, visit www.ambest.com.

A.M. Best Co. Analysts Philip Chung, CFA, +852-2827-3409 philip.chung@ambest.com
or Terrence Wong, +852-2827-3403 terrence.wong@ambest.com
or Public Relations Jim Peavy,+(1) 908-439-2200, ext. 5644 james.peavy@ambest.com
or Rachelle Morrow,+(1) 908-439-2200, ext. 5378 rachelle.morrow@ambest.com

Business: A.M. Best revises rating outlook for central reinsurance corporation

Oldwick, New Jersey (BUSINESS WIRE) - A.M. Best Co. has revised the rating outlook to positive from stable for Central Reinsurance Corporation (Central Re) (Taiwan).

At the same time, A.M. Best has affirmed Central Re's financial strength rating of A- (Excellent) and issuer credit rating (ICR) of "a-".

The ratings reflect Central Re's strengthened risk-based capitalization, continuous improvement in risk management and stable operating performance. The ratings also recognize the company's continued efforts in strengthening its overseas market presence in recent years.

Central Re's net premium leverage ratio (net premium written over adjusted capital and surplus) improved to 1.08 times due to higher retained earnings and an increase in equalization reserve in 2007. The company's adjusted capital and surplus (including equalization reserve) increased to TWD 12,055 million (USD 370 million) as at year-end 2007. In A.M. Best's view, the company's risk-adjusted capitalization is sufficient to support its current ratings as demonstrated by Best's Capital Adequacy Ratio (BCAR).

Central Re launched its enterprise risk management (ERM) program in 2004. A.M. Best noted that Central Re has incorporated the results of its risk management model in its strategic decision-making process. A.M. Best believes that a sound risk management program would help the company to better manage its risk exposure, leading to higher efficiency in capital management.

Central Re has maintained profitable and stable underwriting results with a combined ratio falling within the 90 per cent-97 per cent level in the past five years. Given that Taiwan is a catastrophe-prone country, Central Re's stable and consistent operating performance has demonstrated its prudent underwriting control and risk management practice.

Offsetting factors are the competitive market condition and limited reinsurance business growth in Taiwan.

Central Re has expanded its business to overseas reinsurance markets in recent years. Given the competitive environment in the reinsurance market in Asia, A.M. Best believes that it will be a challenge for Central Re to develop its market presence with meaningful scale and profitability in overseas markets.
Nonetheless, A.M. Best will continue to monitor the progress of the company's overseas expansion plan.

Central Re focused mainly on the domestic reinsurance market, with 94.6 per cent and 93.5 per cent of its gross premiums written generated from Taiwan in 2006 and 2007, respectively. Due to the market consolidation and higher premium retention in Taiwan's direct insurance market, the size of the reinsurance market in Taiwan has been shrinking in the past four years. Central Re's business growth is limited by the domestic reinsurance market.

Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers.
For more information, visit www.ambest.com.

A.M. Best Co. Analysts Billy Kwan, +852-2827-3405
billy.kwan@ambest.com
or Terrence Wong, +852-2827-3403 terrence.wong@ambest.com
or Public Relations Jim Peavy ,+(1) 908-439-2200, ext. 5644
james.peavy@ambest.com
or Rachelle Morrow, +(1) 908-439-2200, ext. 5378
rachelle.morrow@ambest.com

Insurance: A.M. Best affirms ratings of New Zealand local government insurance

A.M. Best affirms ratings of New Zealand local government insurance corporation limited (Civic Assurance)

Oldwick, N.J. (BUSINESS WIRE) - A.M. Best Co. has affirmed the financial strength rating of A (Excellent) and issuer credit rating of "a" of New Zealand Local Government Insurance Corporation Limited (Civic Assurance) (New Zealand).
The outlook for both ratings is stable.

The rating affirmations reflect Civic Assurance's solid risk-based capitalization, continued operating profitability and strong liquidity. The ratings also acknowledge the company's unique market position in the local government authorities sector.

Continued softening in premium rates due to competition and unfavorable claims experience has exacerbated Civic Assurance's underwriting margin, leading to an increase in net loss ratio from 36.0% in 2006 to 52.6% in 2007. Nonetheless, with a combined ratio of approximately 83.6%, the company produced a positive underwriting profit of NZD 200,000 (USD 155,000) in 2007.

With approximately 43% of invested assets held in cash and New Zealand government bonds, Civic Assurance maintains strong liquidity in response to the short-tailed nature of its insurance liabilities. Return from the fixed income and property-oriented portfolio has enabled the company to generate an overall return on equity of approximately 10.4% in 2007, offsetting the deterioration in loss experience.

Civic Assurance's risk-adjusted capitalization, as measured by Best's Capital Adequacy Ratio, remained strong in fiscal year 2007, although a further increase in premium retention in 2007 led to a higher level of underwriting risk. The company further strengthened its surplus by 6.1% to NZD 19.2 million (USD 14.9 million) in 2007. Consistent surplus growth has allowed Civic Assurance to maintain its underwriting leverage at a prudent level over the past five years. In view of the company's underwriting discipline and capital management philosophy, A.M. Best anticipates Civic Assurance will maintain adequate capitalization through retained earnings to support the higher level of underwriting risk inherent within its commercial risk oriented book of businesses.

Partially offsetting rating factors include the ongoing soft market environment, potential volatility associated with the increase in underwriting risk exposure and the limited long-term growth potential in Civic Assurance's designated market.

Ongoing soft market conditions and intensifying competition, particularly in the commercial risk segment, are expected to challenge Civic Assurance's underwriting profitability in the near term. Additionally, because of the company's niche underwriting focus on the local government and public sectors, its premium growth over the long term might be limited.

The increase in underwriting risk exposure resulting from the change in reinsurance coverage could translate into a higher degree of volatility in underwriting profitability for Civic Assurance, although its capitalization remained solid to absorb potential loss from adverse claims experience. A.M. Best will continue to monitor loss development of Civic Assurance's insurance book after the change in the reinsurance coverage.

Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers.
For more information, visit www.ambest.com.

A.M. Best Co.
Analysts:Billy Wong, +852-2827-3414 billy.wong@ambest.com
Terrence Wong, +852-2827-3403 terrence.wong@ambest.com
or Public Relations:Jim Peavy,+(1) 908 439 2200, ext. 5644
james.peavy@ambest.com
Rachelle Morrow, +(1) 908 439 2200, ext. 5378
rachelle.morrow@ambest.com

Business: A.M. Best revises for positive for Pacific International Insurance

A.M.-BEST) A.M. Best revises outlook to positive for Pacific International Insurance Limited

Oldwick, N.J. (BUSINESS WIRE) - A.M. Best Co. has revised the outlook to positive from stable for the ratings of Pacific International Insurance Limited (PII) (New Zealand). Concurrently, A.M. Best has affirmed PII's financial strength rating of B+ (Good) and issuer credit rating of "bbb-".

The rating affirmations reflect PII's favorable operating results and persistent improvement in risk-adjusted capitalization. The ratings also consider the company's stable near-term earnings prospects.

The revision of PII's rating outlook reflects its stable earnings prospects from its niche underwriting expertise and continued strong presence in its core underwriting segment.
PII's capital and surplus on an absolute basis have increased approximately 2.5 times since 2005, and A.M. Best expects the company's stable earnings prospects to foster surplus accumulation in the near future.

With a five-year average combined ratio and loss ratio of 64.9% and 25.9%, respectively, PII's operating performance has been highly profitable since fiscal year 2002. Due predominantly to retention of operating earnings, the company's risk-adjusted capitalization improved in 2007, as measured by Best's Capital Adequacy Ratio.

Offsetting rating factors include PII's potential exposure to multiple large claims, short operating history and the uncertainty associated with expanding into new markets.

PII's reinsurance is structured on an excess of loss basis with a relatively large retention per claim, and the arrangement potentially exposes the company's capitalization to multiple large claims. In spite of the claim exposure, significant surplus accumulation over the past three years lowered the retention per risk to approximately 4% of PII's capital and surplus for fiscal yearend 2007 as compared to 10% as at fiscal year end 2005.

PII's continual expansion into new markets may expose the portfolio to additional risk dimensions, although premiums written from these markets remain relatively small compared to the overall portfolio. In view of the current scale of PII's book, A.M. Best has some concerns regarding the potential volatility of PII's underwriting experience as the portfolio develops.

For Best's Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings.

Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers.
For more information, visit www.ambest.com.

A.M. Best Co.
Analysts
Billy Wong, +852-2827-3414 billy.wong@ambest.com
or Terrence Wong, +852-2827-3403 terrence.wong@ambest.com
or Public Relations
Jim Peavy, +(1) 908 439 2200, ext. 5644 james.peavy@ambest.com
or Rachelle Morrow, +(1) 908 439 2200, ext. 5378 rachelle.morrow@ambest.com

Financial/Insurance: A.M. Best affirms ratings of Guild Insurance Limited

Oldwick, N.J. (BUSINESS WIRE) - A.M. Best Co. has affirmed the financial strength rating of A-(Excellent) and the issuer credit rating of "a-" of Guild Insurance Limited (GIL) (Australia). The outlook for both ratings is stable.

The ratings reflect GIL's improved risk-adjusted capitalization and consistent operating profitability. The ratings also recognize the company's dominance in the health care and child care sectors.

Despite the continued downward pressure on premium rates, GIL's net income after tax increased to AUD 24 million (USD 20.4 million) in fiscal year 2007 from AUD 22.7 million (USD 17.5 million) in fiscal year 2006, translating to an increase of 6 per cent. Deterioration in the company's loss ratio was offset by improvements in the expense ratio, leaving GIL's combined ratio virtually unchanged over the fiscal year.

GIL's risk-adjusted capitalization, as measured by Best's Capital Adequacy Ratio, is commensurate with its existing ratings. The company's net premium leverage declined slightly, which can be attributed to profitable operating earnings with organic growth in net premiums written in 2007.

Being a wholly owned subsidiary of the Pharmacy Guild of Australia, GIL has a unique advantage in distributing its services to the pharmacists and generally to the broader health care market. While GIL has sustained its foothold in the pharmacy and child care sectors, the company continues to diversify its underwriting portfolio and expand its product reach geographically.

Partially offsetting these positive rating factors are the threat on GIL's market niche posed by new entrants and tightening profit margins due to continued pressure on premium rates.

Continued market competition has seen continued softening of premium rates in commercial lines, which could challenge GIL's underwriting profitability going forward. A.M. Best expects that GIL's underwriting performance will remain profitable in the near-term, albeit at a more modest level.

For Best's Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings.

Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers.
For more information, visit www.ambest.com.

Analysts
Philip Chung, CFA, +852-2827-3409 philip.chung@ambest.com or Terrence Wong, +852-2827-3403 terrence.wong@ambest.com
or Public Relations
Jim Peavy,+(1) 908-439-2200, ext. 5644 james.peavy@ambest.com
or Rachelle Morrow, +(1) 908-439-2200, ext. 5378 rachelle.morrow@ambest.com

Insurance: A.M. Best Assistant General Manager to speak at Asian CFO Summit

Oldwick, N.J. (BUSINESS WIRE) - A.M. Best Co.'s Assistant General Manager, Analytics Moung Mo Lee will speak at the Asian CFO Summit on the panel discussion: "Expectations of CEOs, Board and Regulators of CFOs & How These Expectations Can Be Met and What Keeps CFOs Awake at Night." MM Lee will speak on expectations from a ratings agency perspective on 9 May at 11:00 a.m.

The Asian CFO Summit will take place from 7 to 9 May at the Makati Hilton Hotel in Singapore.

For more information on Best's Ratings, please visit www.ambest.com/ratings.

Information about the conference is available at http://www.asiainsurancereview.com.

Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers.
For more information, visit www.ambest.com.

A.M. Best Co.
Feyi Omola, +44(0)207-397-0261 feyi.omola@ambest.com

Insurance: A.M. Best Senior Analyst to speak at Fifth Philippine Non-Life Insurance Summit

Oldwick, New Jersey (BUSINESS WIRE) - A.M. Best Co.'s Managing Senior Financial Analyst Terrance Wong will speak at the fifth Philippine Non-Life Insurance Summit on the topic, "The Importance and Implications of Catastrophe Risk Management in Rating Analysis."

A.M. Best will participate as a major sponsor at the summit, which will take place 23 April at the Makati Shangri-La Hotel in Makati City, Philippines. Terrance Wong will speak from 1:30 to 2:15 on 23 April, in the Rizal Ballroom.

For more information on Best's Ratings, please visit www.ambest.com/ratings.

Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers.
For more information, visit www.ambest.com.

A.M. Best CompanyFeyi Omola, +(44) 207-397-0261 feyi.omola@ambest.com

A.M. Best affirms ratings of Tower Insurance Limited

Oldwick, N.J. (BUSINESS WIRE) - A.M. Best Co. has affirmed the financial strength rating of A- (Excellent) and the issuer credit rating of "a-" of Tower Insurance Limited (Tower Insurance) (New Zealand).

The outlook for both ratings remains stable.

The affirmation of the ratings reflects Tower Insurance's improving operating performance and moderate risk-adjusted capitalization.

The improving trend in Tower Insurance's underwriting results suggests that turnaround strategies are finally yielding the desired results. Underwriting profits were NZD 9.4 million (USD 7.1 million) in fiscal year 2007 compared to NZD 7.1 million (USD 4.6 million) the previous year. The loss ratio in fiscal year 2007 improved to 63.8% from 65.6% in fiscal year 2006. Expense increases, which were offset by improving claims experience, together with strong investment earnings resulted in net income increasing by 58% during the year.

Although Tower Insurance's risk-adjusted capitalization, as measured by Best's Capital Adequacy Ratio (BCAR), was weaker in fiscal year 2007, it remains at a level commensurate with its ratings. An improvement in BCAR driven by increased asset risk and retention of operating earnings was offset by the changes of risk retention on the underlying layer of Tower Insurance's catastrophe program. The net premium leverage improved to 1.5 times in fiscal year 2007 from 1.6 times in fiscal year 2006.

Tower Insurance has maintained a competitive position in New Zealand and other Pacific regions. Through its strategic alliance with banks, financial institutions and direct sales distribution channels, Tower Insurance achieved stable growth in gross premiums written in recent years.

Other rating factors include Tower Insurance's exposure to catastrophic perils and distribution risk.

Weather-related events have caused volatility in Tower Insurance's profitability in recent years. Risks in the Pacific have additional exposures to political and social instability. While insurers operating in the region are faced with similar challenges, A.M. Best believes that Tower Insurance's risk management strategy somewhat mitigates these concerns.

Tower Insurance has maintained strong strategic alliance partnerships with banks and other financial institutions.
However, despite the progress made at diversifying its distribution, its exposure to a single alliance partner remains.

For Best's Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings.

Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers.
For more information, visit www.ambest.com.

A.M. Best Co.AnalystsPhilip Chung, CFA, +852-2827-3409 philip.chung@ambest.com or Terrence Wong, +852-2827-3403 terrence.wong@ambest.com or Public RelationsJim Peavy,+1-908-439-2200, ext. 5644 james.peavy@ambest.com or Rachelle Morrow,+1-908-439-2200, ext. 5378 rachelle.morrow@ambest.com

A.M. Best affirms ratings of China International Reinsurance Co

Oldwick, N.J. (BUSINESS WIRE) - A.M. Best Co. has affirmed the financial strength rating of A- (Excellent) and the issuer credit rating of "a-" of China International Reinsurance Company Limited (CIRe) (Hong Kong). The outlook for both ratings is stable.

The rating reflects CIRe's profitable operating performance, adequate capitalization and prudent reserving practice.

CIRe has benefited from moderate catastrophe losses and a favorable investment market in 2007. CIRe's earnings momentum continued in 2007 after it had a net profit of a record high level of HKD 363 million in 2006. These two years of solid earnings are the key drivers of maintaining the stable outlook.
Given price deterioration and increasing competition in the global reinsurance market, CIRe's ability to maintain underwriting controls and standards of determining pricing adequacy are key factors for the sustainability of the long-term operating performance.

CIRe's risk-adjusted capitalization improved in 2007 compared to a year earlier due to the purchase of additional retrocession cover and higher profit retention in 2006. The company's current level of risk-adjusted capitalization is adequate to support the ratings. In addition, the company converted HKD 820 million (USD 105 million) of general reserves into paid-up capital in 2007, further demonstrating the capital commitment from its parent company, China Insurance International Holdings (CIIH). However, A.M. Best believes that CIRe's weather-related catastrophic exposure is still relatively high, which has resulted in a volatile Best's Capital Adequacy Ratio (BCAR) over the past few years. A.M. Best remains cautious of this volatility.

Although pressure on CIIH to provide additional capital to support the organic growth from its major associated companies?Tai Ping Life and Tai Ping Insurance in China?has been relieved due to the continuous improvement in the associated companies' operating results, A.M. Best is still keen to understand all risks (with regard to the associated companies) that could potentially impact CIRe's financial strength.

For Best's Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings.

Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers.
For more information, visit www.ambest.com.

A.M. Best Co.Analysts:Billy Kwan, +852-2827-3405 billy.kwan@ambest.com or Terrence Wong, +852-2827-3403 terrence.wong@ambest.com or Public Relations:Jim Peavy, +(1) 908 439 2200, ext. 5644 james.peavy@ambest.com or Rachelle Morrow, +(1) 908 439 2200, ext. 5378 rachelle.morrow@ambest.com

A.M. Best assigns ratings to Asian reinsurance corporation

Oldwick, N.J. (BUSINESS WIRE) - A.M. Best Co. has assigned a financial strength rating of B++ (Good) and an issuer credit rating of "bbb" to Asian Reinsurance Corporation (Asian Re) (Thailand). The outlook for both ratings is stable.

The ratings reflect Asian Re's strong capitalization, positive underwriting performance and unique organizational structure.

Asian Re is an intergovernmental organization that was established in May 1979 under the auspices of United Nations Economic and Social Commission for Asia and the Pacific (UN-ESCAP). Effective 9 July 2005, it opened its associate membership to non-ESCAP member countries of UN and private organizations. Asian Re successfully admitted seven associate members up to the end of December 2007 and raised additional capital of USD 32.7 million over the past two years. The company's capital and surplus stood at USD 51.58 million as at year end of 2007.

A.M. Best believes that Asian Re's current risk-adjusted capitalization level is adequate to support its business growth for the next three years.

Benefiting from its unique organization status, Asian Re obtained favorable treatments from its member countries. For instance, the intergovernmental agreement allows all insurance and reinsurance institutions operating in member countries to cede not less than 5% of their outward reinsurance treaties to Asian Re. A.M. Best believes that these favorable treatments would assist the company in maintaining its good performance.

Asian Re has a stable underwriting performance and has consistently achieved a combined ratio below 100% from 2002 to 2007. Asian Re invests over 90% of its invested assets in cash and fixed income securities, which also have provided a stable income stream.

Offsetting factors include relatively small underwriting capacity and the intense competition in the Asian reinsurance market.

Although Asian Re's capital level has strengthened in recent years, its underwriting capacity remains relatively small as compared to other reinsurers in Asia.

A.M. Best believes it will be a challenge for Asian Re to compete in the competitive Asian reinsurance market. In recent years, other reinsurance companies have also strengthened their capitalization. The additional capacity brought to the market with no recent major reinsurance losses in Asia could dampen expected returns. Notwithstanding Asian Re's future business plan, its ability to secure profitable new business outside its core markets remains to be seen.

For Best's Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings.

Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers.
For more information, visit www.ambest.com.

A.M. Best Co. Analysts: Billy Kwan, +852-2827-3405 billy.kwan@ambest.com or Moungmo Lee, +852-2827-3402 moungmo.lee@ambest.com or Public Relations:Jim Peavy, +1-908-439-2200, ext. 5644 james.peavy@ambest.com or Rachelle Morrow, +1-908-439-2200, ext. 5378 rachelle.morrow@ambest.com

A.M. Best removes ratings of Tokio Marine

A.M. Best removes ratings of Tokio Marine Pacific Insurance Limited from under review and assigns stable outlook

Oldwick, N.J. (BUSINESS WIRE) - A.M. Best Co. has removed from under review with negative implications the financial strength rating of A+ (Superior) and the issuer credit rating of "aa-" of Tokio Marine Pacific Insurance Limited (TMPI) (Guam). At the same time, A.M. Best has affirmed the ratings and assigned a stable outlook.

TMPI was placed under review due to the uncertainties relating to its plan to expand its business lines. During the third quarter of 2007, TMPI's parent company, Tokio Marine & Nichido Fire Insurance Co. Ltd.

(TMNF), transferred net assets of approximately USD 4 million from its branch operation in Guam to TMPI. TMPI's capital and surplus stood at USD 12 million as at September 30, 2007.

A.M. Best believes that TMPI's risk-adjusted capitalization, as demonstrated by Best's Capital Adequacy Ratio, is adequate to support the current ratings and the expansion plan to underwrite property and casualty business.

The ratings also recognize the financial support, in terms of reinsurance protection, as well as the explicit financial guarantee from TMNF.

For Best's Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings.

Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers.
For more information, visit www.ambest.com.

A.M. Best Co.

Analysts:Billy Kwan, +852-2827-3405 billy.kwan@ambest.com or Moungmo Lee, +852-2827-3402 moungmo.lee@ambest.com or Public Relations: Jim Peavy, +(1) 908-439-2200, ext. 5644 james.peavy@ambest.com or Rachelle Morrow, +(1) 908-439-2200, ext. 5378 rachelle.morrow@ambest.com