‘BBBpi’ Assigned to Factory Mutual

November 27, 2000

Standard & Poor’s (S&P) assigned a “BBBpi” FSR to Factory Mutual Insurance Co. and its two wholly owned pool members, Affiliated FM Insurance Co. and Appalachian Insurance Co., reflecting the pool’s dominant niche market position and strong capitalization. Offsetting factors include recent poor underwriting performance as well as volatility in earnings and premium revenues.