Best Puts SCOR, Converium Ratings Under Review- Negative & Positive

May 15, 2007

A.M. Best Co. has placed the financial strength rating (FSR) of “A-” (Excellent) and the issuer credit ratings (ICR) of “a-” of France’s SCOR Group and its rated subsidiaries under review with negative implications, along with all of its debt ratings on SCOR.

At the same time, Best placed the FSRs of “B++” (Good) and the ICRs of “bbb+” of Swiss reinsurer Converium AG and its rated subsidiaries under review, but with positive indications

Best is the second rating agency to react to the news that Converium has advised its shareholders to accept SCOR’s takeover offer (See IJ web site May 10). Standard & Poor’s said it doesn’t contemplate making any changes in its ratings on Converium or SCOR, following the announcement (See IJ web site May 11).

Best indicated that while the acquisition “would further improve SCOR’s business profile in the global reinsurance market,” it’s premature to “evaluate the impact of this transaction on the combined entities’ risk-adjusted capitalization and also the execution risk inherent in such a transaction.”

Best said it intends to resolve the under review status as soon as possible and expects the ratings to be “equalized at either SCOR’s or Converium’s level.”

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