Employers Re Corp. Affirmed

S&P’s affirmed its “AA-” counterparty credit and financial strength ratings on Employers Reinsurance Corp. (www.ge.com) and its wholly owned subsidiaries. Also affirmed were the “A” counterparty credit and senior debt ratings on GE Global Insurance Holding Corp., the parent company of GE Capital Services’ reinsurance businesses.

All ratings were removed from Credit-Watch where they had initially been placed on Sept. 30, 2002, and subsequently updated on Dec. 6, 2002. The outlook is negative.

The negative outlook reflects uncertainty about whether the management team, given its strong ties to GE, will remain in place and execute its long-term corporate strategy. The management team has taken steps to improve pricing adequacy and operating performance, but S&P’s believes that it is too early to judge its effectiveness fully.