A.M. Best Places Rating of TRANSGUARD Under Review

    Business Editors

    OLDWICK, N.J.--(BUSINESS WIRE)--Feb. 28, 2005--A.M. Best Co. has placed the financial strength rating of A- (Excellent) of TRANSGUARD INSURANCE COMPANY OF AMERICA (TRANSGUARD) (Westmont, IL) under review with negative implications.
    This action follows TRANSGUARD's reporting significant adverse loss reserve development during 2004 and an earlier announcement from its parent company, SIRVA, Inc., (NYSE:SIR) that it will not meet its previously issued earnings guidance for the fourth quarter of 2004. This is due largely to unanticipated charges arising from a review of its accounting practices in connection with implementing procedures to comply with Section 404 of the Sarbanes-Oxley Act of 2002.
    SIRVA also has experienced lower than expected operating margins in each of its business segments. SIRVA is working to complete its annual close and has disclosed that certain charges are related to accounting errors of its European and insurance businesses, of which TRANSGUARD is included. SIRVA's independent accountants have not completed its 2004 audit, and management has indicated that the errors may delay its 10-K filing with the Securities and Exchange Commission and could lead to the possible restatement of previous earnings.
    Due to the adverse loss reserve development reported at TRANSGUARD, the company's projected 2004 capitalization falls short of its current rating. TRANSGUARD's management is assessing capital raising initiatives to address the current shortfall. A.M. Best expects to meet with representatives from TRANSGUARD and SIRVA to assess their financial positions. Should TRANSGUARD fail to raise capital and/or the financial position of SIRVA be materially affected once the 2004 results are reported, A.M. Best believes that the rating of TRANSGUARD will likely be downgraded.

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

    For current Best's Ratings, independent data and analysis on more than 3,000 individual property/casualty companies, groups and industry composites, please visit http://www.ambest.com/pc.

    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 http://www.ambest.com.

--30--AM/ny*

CONTACT: A.M. Best Co. Public Relations Jim Peavy, 908-439-2200, ext. 5644 james.peavy@ambest.com or Rachelle Striegel, 908-439-2200, ext. 5378 rachelle.striegel@ambest.com or Analysts Devin Inskeep, 908-439-2200, ext. 5449 devin.inskeep@ambest.com or Michael Lagomarsino, CFA, 908-439-2200, ext. 5810 michael.lagomarsino@ambest.com

KEYWORD: ILLINOIS NEW JERSEY INTERNATIONAL EUROPE INDUSTRY KEYWORD: INSURANCE BANKING SOURCE: A.M. Best Co.

Copyright Business Wire 2005