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 did not already have a traditional IFS rating from Fitch. Quantitative IFS ratings were generated solely using a statistical model which utilised publicly available financial statement information.  Fitch recognised the limitations associated with using a strict qantitative rating approach (e.g. factors such as affiliate/parent relationships were not considered) but believed that Qantitative IFS ratings would 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 2006 and this rating was affirmed following Fitch Ratings updating its Q-IFS ratings based on information through to 31 December 2006.

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

The definition of BBBq was "Good. Insurers are viewed as possessing 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 indirectly 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 is felt that it is not appropriate or necessary for Nordben to seek independent ratings from the International Rating Agencies.

The Company felt that the Fitch rating was a reasonable assessment given that it rated Nordben on a stand-alone basis.

In March 2009 Fitch redefined its credit ratings and other scales. Consequently, Fitch decided to withdraw all Q-IFS ratings assigned to insurance companies globally.

For more information please review this news release.

The ratings of the Storebrand and Sampo Group companies are as follows:

Storebrand Livsforsikring AS - rated by Standard & Poor's as A- 

Mandatum Life Insurance Company Limited - rated by Fitch as BBB-

IF P&C Insurance Company Limited - rated by Standard & Poor's as A

IF P&C Insurance Ltd - rated by Standard & Poor's as A


April 2010