OVERLAND PARK, Kan.--(BUSINESS WIRE)--June 26, 2003--GE's
Employers Reinsurance Corporation (GE ERC) announced today it received
revised ratings from the A.M. Best Company. For the first time under
current ownership, A.M. Best is evaluating ERC as a standalone
business, eliminating any historic ratings enhancement from its
ownership by the General Electric Company.
As a result, A.M. Best issued an "A" (Excellent) rating with a
stable outlook for Employers Reinsurance Corporation (ERC) and its
affiliated non-life and life reinsurance companies. In addition, A.M.
Best affirmed an "A" rating (Excellent) with a stable outlook for
Westport Insurance Corporation and First Specialty Insurance
Corporation. Finally, A.M. Best issued an "A" rating for ERC's Medical
Protective unit with a negative outlook citing medical malpractice
market challenges.
The rating service also cited ERC's recent poor operating
performance, largely a result of reserve strengthening for prior
underwriting periods as reasons for today's action.
"We have made dramatic changes at ERC in the past three years,"
said Ron Pressman, Chairman, President and CEO of GE ERC. "Despite
recent industrywide rating agency actions including ours today, we
believe our business has never been stronger financially or
strategically."

-- "Our underwriting portfolio has been completely repositioned
since 2000 under a new leadership team.

-- Our reserves from prior periods have been strengthened by more
than $5 billion since mid-year 2000 to recognize the
industry-wide soft underwriting of the late-1990's.

-- Our $28 billion investment portfolio is strong and stable with
more than 90% invested in bonds rated A or better.

-- Our statutory surplus totals $5.5 billion, providing our
customers great long-term security.

-- Our financial performance has improved dramatically with a
first quarter 2003 net income of more than $120 million.

-- GE has recapitalized ERC's operating losses completely with
infusions of $2.4 billion. The losses resulted from the 9/11
tragedy and the prior year reserve strengthening in 2002."

Pressman added: "Despite GE's strong support of ERC during its
19-year ownership, A.M. Best determined that it could no longer
provide any ratings enhancement from GE ownership. Even with GE's
support, including the recent $2.4 billion capital infusions, and
ERC's strong balance sheet, A.M. Best viewed reserve strengthening as
increasing ERC's operating leverage. The reserves will be reduced over
time by actual claims payments."
"We intend to work closely with A.M. Best to restore our A+
ratings on a standalone basis through improved consolidated earnings
performance and capital management programs," Pressman concluded.

Following is a summary of ERC's legal entities and ratings:

-- ERC, GE Reinsurance, Employers Reassurance Corporation, GE
Frankona, ERC Life, First Specialty Insurance Corporation,
Westport Insurance Corporation - "A" (Excellent) with Stable
Outlook

-- GE Medical Protective - "A" (Excellent) with Negative Outlook

Employers Reinsurance Corporation, a GE company (NYSE: GE), is the
world's fourth largest reinsurer and a premier global provider of risk
solutions. ERC serves clients in property and casualty, life,
healthcare, and professional liability insurance and reinsurance, and
other risk management services. More information on ERC is available
at www.ercgroup.com.