A.M. Best Affirms Ratings of Primerica Life Insurance Company and Its Subsidiaries

OLDWICK, N.J.--(Business Wire)--
A.M. Best Co. has affirmed the financial strength rating (FSR) of
A+ (Superior) and issuer credit ratings (ICR) of "aa" of Primerica
Life Insurance Company and its subsidiaries, National Benefit Life
Insurance Company and Primerica Life Insurance Company of Canada
(collectively known as Primerica Life). The outlook for all ratings is
stable. These companies are indirect insurance subsidiaries of
Citigroup, Inc. (Citigroup) (Delaware) (NYSE: C), one of the world's
largest financial services companies with consolidated assets of
approximately $2.2 trillion as of December 31, 2007.

The ratings of Primerica Life reflect its continued strong
profitability, leading position in the U.S. term life insurance
marketplace, strong risk-adjusted capitalization and favorable
liquidity profile. Primerica Life is one of the largest writers of
term life insurance in the United States, and its strong market
position is attributable to its dedicated distribution affiliate,
Primerica Financial Services, Inc. (PFS). This integrated distribution
and operating platform includes nearly 100,000 life agents and is the
primary driver of the insurance unit's excellent operating
performance.

Partially offsetting these strengths is Primerica Life's
operational concentration in commodity term life insurance products
and the competitive challenges inherent in the U.S. individual
insurance market. Primerica Life's focus on term life insurance
products results in concentration risk, as this product line is
price-sensitive and profits primarily are based on mortality gains.
Additionally, A.M. Best believes that the company's reliance on
part-time agents and the accompanying high turnover rates heighten the
company's exposure to market conduct risks.

A.M. Best also notes that there is the potential for Primerica
Life to be sold, as Citigroup has announced plans to shed $400 billion
in assets within the next three years. Primerica Life is part of
Citigroup's Consumer Banking segment, which has been targeted for a
significant portion of the asset sales. If Primerica Life were to be
sold, future rating actions will reflect, among other things, the
relative financial strength of the acquiring organization, its post
acquisition risk-based capital levels and the materiality of its
revenue and earnings contributions to its new parent.

For Best's Ratings, an overview of the rating process and rating
methodologies, please visit www.ambest.com/ratings.

Founded in 1899, A.M. Best Company is a global full-service credit
rating organization dedicated to serving the financial and health care
service industries, including insurance companies, banks, hospitals
and health care system providers. For more information, visit
www.ambest.com.

A.M. Best Co.
Analysts:
Darian Hala, 908-439-2200, ext. 5802
darian.hala@ambest.com
or
Thomas Rosendale, 908-439-2200, ext. 5201
thomas.rosendale@ambest.com
or
Public Relations:
Jim Peavy, 908-439-2200, ext. 5644
james.peavy@ambest.com
or
Rachelle Morrow, 908-439-2200, ext. 5378
rachelle.morrow@ambest.com

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