Ratings

Fitch Ratings

Fitch ratings (an International Ratings Agency - www.fitchratings.com) initiated a program in 2004 to assign Quantitative Insurer Financial Strength (IFS) ratings to insurance companies that do not already have a traditional IFS rating from Fitch. Quantitative IFS ratings are generated solely using a statistical model which utilises publicly available financial statement information.  Fitch recognise the limitations associated with using a strict qantitative rating approach (e.g. factors such as affiliate/parent relationships are not considered) but believe that Qantitative IFS ratings will provide a reasonable representation of the Company's stand-alone financial strength and operating profile.

Nordben Life and Pension Insurance was assigned A Quantitative IFS rating of BBBq based on financial statement information through to 31 December 2005 and this rating has been affirmed following Fitch Ratings updating its Q-IFS ratings based on information through to 31 December 2006.

Ratings of BBBq and higher are considered to be "secure".

The definition of BBBq is "Good.  Insurers are viewed as possesing good capacity to meet policyholder and contract obligations based solely on their stand-alone publicly available financial statement information.  Risk factors are somewhat high, and the impact of any adverse business and economic factors is expected to be material yet manageable."

Nordben Life and Pension Insurance is owned by the Storebrand Group, Sampo Group, Varma and focuses on providing Group and Individual LIfe and Pension Insurance Solutions to Nordic Industry and Commerce.  Accordingly, it has been felt that it is not appropriate or necessary for Nordben to seek independent ratings from the International Rating Agencies.

The Company feels that Fitch rating is a reasonable assessment given that it rated Nordben on a stand-alone basis.


December 2007