A.M. Best Affirms Rating of Fidelity Investments Life and Its Subsidiary, Empire Fidelity Investments

October 7, 2004

OLDWICK, N.J. - A.M. Best Co. has affirmed the financial strength rating of A+ (Superior) of Fidelity Investments Life Insurance Company (FILI) (Boston, MA) and its wholly-owned subsidiary, Empire Fidelity Investments Life Insurance Company (EFILI) (New York, NY). FILI is a wholly-owned subsidiary of FMR Corp. (Boston, MA), which is the parent holding company of Fidelity Investments (Fidelity). The outlook on all ratings is stable.

These ratings are based on the consolidated financial strength and operating performance of FILI and EFILI. The ratings reflect the group's superior risk-based capital, consistent operating performance, solid liquidity position, superior quality assets, strong management and the quality of its investment portfolio. Additionally, senior management has made sustained efforts to leverage its distribution sources including selling directly to the customer via telephone, direct mail, Fidelity's Internet website, RIAs and Fidelity's numerous walk-in Investor Centers.

FILI enjoys substantial and unique strategic benefits from its increasingly valuable role within Fidelity. This is reinforced by upper management's efforts to reposition the organization's focus to a "One Fidelity" marketing approach, which enables FILI and EFILI to leverage strengths of its parent company, including the Fidelity brand name, investment expertise andtechnology; thus, effectively marketing complementary retirement savings and insurance products to Fidelity's substantial and expanding client base, FILI's primary target market.

Partially offsetting these strengths is the downward trend of new premiums written and the challenge of stimulating growth in its core individual life and annuity businesses in an increasingly competitive environment. FILI continues to move forward with their internal re-organization and business initiatives aimed at making its proprietary products more competitive in the marketplace as well as playing a key role in Fidelity's retirement income planning initiative.

Source: A.M. Best Co.

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