A.M. Best Upgrades Rating of American Skandia.

Business Editors

OLDWICK, N.J.--(BUSINESS WIRE)--Jan. 28, 2004

A.M. Best Co. has upgraded the financial strength rating to A (Excellent) from A- (Excellent) of American Skandia Life Assurance Company (ASLAC) (Shelton, CT). The rating has been removed from under review and a positive

The rating action reflects the company's strategic importance to its parent, Prudential Financial, Inc. This rating is supported by ASLAC's solid position in the variable annuity business which complements Prudential's long-term business strategy in the retirement saving business. Since its acquisition by Prudential, the merger of its annuity business with ASLAC's has created one of the leading variable annuity writers in the United States. A.M. Best expects that ASLAC's results should be a factor in Prudential reaching its longer term financial goals.

Offsetting these positive rating factors is the company's need to rely on Prudential for financial support in the competitive and volatile variable annuity market. With its strong position in the variable annuity business, ASLAC is exposed to regulatory, legal and market pressures.

Despite these concerns, the company's conservative balance sheet and improving operating profitability, achieved through strict underwriting, support the positive rating outlook.

A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. For more information, visit A.M. Best's Web site at www.ambest.com.