Temple Insurance’s rating placed under review

Temple Insurance Company financial strength rating of A (Excellent) has been placed under review with negative implications, by A.M. Best. This degraded review was initiated in line with the recent announcement that Munich Re is reviewing the reserve position of its U.S. subsidiary, American Re Corporation Group.Temple’s published rating was recently affirmed on June 24, 2005, based on the stand-alone analysis of its financial position. A.M. Best’s affirmation recognizes Temple’s stand-alone risk-adjusted capitalization and its favorable earnings. However, given that Temple’s current published rating reflects partially the rating enhancement from its affiliation with Munich Re, its rating will remain under review until the rating issues concerning its ultimate parent are resolved.