A.M. BEST REVISES OUTLOOK TO STABLE FOR GENERAL INSURANCE INDIA.

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(BW)(NJ-A.M.-BEST) A.M. Best Revises Outlook to Stable from Negative for General Insurance Corporation of India

Business Editors

OLDWICK, New Jersey (BUSINESS WIRE) - Dec 28, 2007--A.M. Best Co. has affirmed the financial strength rating of A- (Excellent) and the issuer credit rating (ICR) of "a-" of General Insurance Corporation of India (GIC) (India). The outlook for both ratings has been revised to stable from negative.

The ratings reflect the revision of India's Country Risk Tier by A.M. Best and GIC's superior risk-adjusted capitalization.

A.M. Best has revised the Country Risk Tier of India to Tier III from Tier IV. The revision indicates A.M. Best's opinion that the impact of country-specific risk factors, which might negatively affect GIC's financial strength and ability to meet its financial obligations, has been lowered.

GIC's adjusted capital and surplus (including unrealized capital gains) stood at INR 158 billion (US$3.6 billion) as at March 31, 2007. The company's risk-adjusted capitalization is superior as demonstrated by Best's Capital Adequacy Ratio. However, the company's risk-adjusted capitalization is highly exposed to the Indian equity market, given 50 per cent (at market value) of its invested assets was in equities.