AM Best


A.M. Best Assigns Rating to Generali USA Life Re


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William Pargeans

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william.pargeans@ambest.com
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Jim Peavy

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Rachelle Striegel

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rachelle.striegel@ambest.com


FOR IMMEDIATE RELEASE

OLDWICK, N.J. - SEPTEMBER 02, 2003 12:00 AM (EDT)
A.M. Best Co. has assigned an initial financial strength rating of A (Excellent) to Generali USA Life Reassurance Company (Generali Life Re) (Kansas City, MO). The rating outlook is stable. The company is the U.S. life reinsurance subsidiary of its ultimate parent, Generali - Assicurazioni Generali S.p.A. (Generali Italy), the leading life insurance group in Italy based upon market share and Europe's largest insurance group by market capitalization.

The rating reflects Generali Life Re's strategic role as the U.S. life reinsurance arm of its ultimate parent, Generali Italy. The rating also reflects the company's U.S. life reinsurance market position, which has been developed through its former Business Men's Assurance Company of America (BMA) franchise, and its adequate capitalization. During second quarter 2003, the life reinsurance business from the former BMA entity was transferred to Generali Life Re. Generali Life Re was initially capitalized at $200 million, which was funded by a cash infusion from Generali Italy. Generali Life Re (through BMA) has demonstrated a favorable track record in life reinsurance through continued business growth and maintenance of relationships with major direct life writers. Its adequate capitalization is further supported by internal retrocessions within the Generali Group.

These strengths are partially offset by the competitive U.S. life reinsurance market, which has become more challenging because of the recent consolidation in this segment. In addition, the current low interest rate environment may present a challenge for Generali Life Re to generate favorable investment income as the company deploys its initial $550 million cash position into appropriate asset classes.

A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source.

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