Best Ratings Report

Editor's note: This information is courtesy of A.M. Best Co.
For further information, visit www.ambest.com/ratings.

A.M. Best Co. has affirmed the financial strength rating of B++ (Good) and issuer credit rating of “bbb” of DaimlerChrysler Insurance Company (DCIC) (Farmington Hills, MI). The outlook for both ratings is stable.

DCIC’s capitalization and operating performance has been and continues to be robust. However, DCIC’s current ratings are constrained by the operating challenges of its parent company, DaimlerChrysler Financial Services Americas LLC (Chrysler LLC).

The ratings reflect DCIC’s solid capitalization and its affiliation with Chrysler LLC, one of the world’s leading automotive corporations. The ratings further acknowledge DCIC’s favorable, although somewhat variable,
operating results that are derived from its underwriting expertise, loss prevention measures and effective low cost distribution systems.

These rating strengths are partially offset by the group’s limited product offering, which is subject to volatility in underwriting results due to weather-related events. While underwriting results may continue to be
impacted due to storm-related losses, management has increased its catastrophe loss limits, which it believes will protect overall surplus levels. Although surplus has fluctuated over a five-year period (largely owing to stockholder dividends), management is committed to maintaining excellent capitalization levels.

DCIC benefits from its parent’s well diversified auto dealer network that provides it with a highly efficient and effective distribution system, strong operating synergies, market opportunities and strategic value. The
company’s sustainable competitive market position is further enhanced by its high business retention, extensive geographic spread of risk and solid product knowledge within its specialty niche market. The ratings also recognize management’s ongoing initiatives to maintain its above average underwriting results.

*******

A.M. Best Co. has affirmed the financial strength rating (FSR) of A (Excellent) and issuer credit ratings (ICR) of
“a” of Infinity Property & Casualty Group (Infinity P/C) (Birmingham, AL) and its operating members. In addition, A.M. Best has affirmed the ICR of “bbb” and debt rating of “bbb” on $200 million 5.50% senior unsecured notes, due 2014 of Infinity Property & Casualty Corporation (IPCC) (Birmingham, AL) [NASDAQ: IPCC]. The outlook for all ratings is stable. (See below for a detailed listing of the companies and ratings.)

The affirmation of the FSR reflects Infinity P/C’s excellent capitalization, favorable operating performance and strong non-standard automobile market presence. Infinity P/C ranks among the leading
non-standard automobile writers in the United States. Infinity P/C’s business is heavily focused in California and Florida, which generates approximately two-thirds of direct business written.

The FSR of A (Excellent) and ICRs of “a” have been affirmed for Infinity Property & Casualty Group and its following operating members:

Infinity Assurance Insurance Company
Infinity Auto Insurance Company
Infinity Casualty Insurance Company
Infinity General Insurance Company
Infinity Indemnity Insurance Company
Infinity Insurance Company
Hillstar Insurance Company
Infinity Preferred Insurance Company
Infinity Premier Insurance Company
Infinity Reserve Insurance Company
Infinity Safeguard Insurance Company
Infinity Security Insurance Company
Infinity Select Insurance Company
Infinity Specialty Insurance Company
Infinity Standard Insurance Company
Infinity County Mutual Insurance Company

The ICR of “bbb” has been affirmed for Infinity Property & Casualty Corporation. The following debt rating has been affirmed:

Infinity Property & Casualty Corporation—
-- “bbb” on $200 million 5.50% senior unsecured notes, due 2014.

*******

A.M. Best Co. has assigned a debt rating of “a-” to $450 million 5.6% seven year senior unsecured notes issued by ACE INA Holdings Inc. (Philadelphia, PA). The rating outlook is stable.

The senior notes will be fully and unconditionally guaranteed by ACE Limited (ACE) [NYSE: ACE:] (Cayman Islands). Proceeds from the notes will be used to partially repay inter-company indebtedness to ACE, while ACE will in turn use the repayment of this debt to redeem a portion of its $575 million of perpetual preferred stock.

At March 31, 2008, ACE’s debt-to-capital ratio stood at 18.4% including trust preferreds and $1 billion of repurchase securities, which are anticipated to be retired from operating cash flows over the next few
quarters. ACE’s overall financial leverage will increase as a result of partially financing the Combined acquisition, which added a significant amount of additional goodwill to ACE’s balance sheet in second quarter 2008 representing an estimate greater than 20% of shareholder equity.

By year-end 2008 the debt-to-capital ratio should moderate to just under 18% (absent material earnings variability) while leverage based on tangible capital to modestly over 20%, which remains commensurate with ACE’s debt ratings. A.M. Best remains focused on the level of available cash flows to ACE INA Holdings Inc., which is dependent mainly on domestic and U.K. subsidiaries for debt service.

The increase in financial leverage is supported by ACE’s well capitalized and stable balance sheet, culture and commitment to underwriting profitability, its capacity to generate significant earnings and a comprehensive enterprise risk management structure, which balances the company’s above average risk profile including susceptibility to natural and man-made catastrophe losses.