A.M. Best's Rating = A+ Superior

As a subsidiary of The Guardian Life Insurance Company of America, Berkshire Life places a very high priority on risk management, financial strength and operational excellence.

A Rating Report from the A.M. Best Company represents an independent opinion from the leading provider of insurer ratings of a company's financial strength and ability to meet its obligations to policyholders.

The Rating of the Guardian Life Group, which includes The Guardian Life Insurance Company of America, The Guardian Insurance & Annuity Company, Inc., and Berkshire Life Insurance Company of America (together known as Guardian) reflects the group's historically strong capitalization, its conservative operating strategy, and the high overall quality of its investment portfolio - which leads to and supports an exceptional liquidity position. In addition, the rating acknowledges the groups diversified product portfolio and earnings sources, which are supported by strong positions the company has attained in its core individual life, individual disability, group insurance, and equity-based product segments. Further, Guardian's rating also recognizes its improved operating results in its core individual and group insurance lines reflecting the company's strategy to refocus its efforts on its core businesses, and the strong growth in capital and surplus reported in 2003. Partially offsetting these strengths, are the challenges to maintain the momentum built within its core operations in the current difficult competitive environment, while prudently managing the contraction of its non-core lines. The outlook on the rating is stable.

Over the past five years, the company grew first year disability premiums at a compound annual growth rate of 10%. DI products are sold primarily through the group's core Field Representative force, independent agents and outside brokers. Earnings in this line have been volatile in the past due to poor claims experience. However, as a result of the merger with Berkshire, and efforts to improve operating fundamentals such as pricing, underwriting, and claims management, results have been stabilized and are expected to continue to improve. The DI blocks of Guardian and Berkshire were combined, and are managed by Berkshire, which has an excellent track record with this line. The combined organization is now the second largest seller of non-cancelable individual disability insurance in the country.