A.M. Best Places Ratings of State Farm International Life Insurance Company Ltd. Under Review

A.M. Best Co. has placed under review with negative implications the financial strength rating of A+ (Superior) and the issuer credit rating of "aa" of State Farm International Life Insurance Company Ltd. (SFI) (Bermuda).

The rating actions follow the recent announcement by Montreal-based Desjardins Group to acquire all of State Farm Mutual Automobile Insurance Company's (State Farm) (Bloomington, IL) Canadian property/casualty, life insurance and Canadian mutual fund, loan and living benefits businesses. State Farm's life insurance business is conducted in Canada through a branch of SFI. Desjardins Group is the leading cooperative financial group in Canada, and the company anticipates becoming the second-largest property/casualty insurer in the country. The property/casualty and life insurance transactions will be structured as assumption reinsurance agreements.

The ratings will remain under review until the completion of the transaction, which is expected to occur in January 2015. Upon completion of the transaction, A.M. Best expects the ratings of SFI to be withdrawn, as the policyholder obligations as well as the majority of its assets are expected to transfer to the Desjardin Group.

Additionally, in A.M. Best's opinion, the sale of the property/casualty business produced by State Farm's Canadian branches will not create a material change in the financial strength and ongoing operating performance of State Farm Fire and Casualty Company (Bloomington, IL) or the ultimate parent, State Farm.

The methodology used in determining these ratings is Best's Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best's rating process and contains the different rating criteria employed in the rating process. Best's Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.

A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

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A.M. Best Co.
Joan Sullivan
Senior Financial Analyst
[phone], ext. 5144
[e-mail]
or
William Pargeans
Assistant Vice President
[phone], ext. 5359
[e-mail]
or
Rachelle Morrow
Senior Manager, Public Relations
[phone], ext. 5378
[e-mail]
or
Jim Peavy
Assistant Vice President, Public Relations
[phone], ext. 5644
[e-mail]