Hartford Fire Insurance Company Selects RMS Peril Model to Set Pricing for Catastrophe Bond Program

Newark, Calif. – March 21, 2006 – Risk Management Solutions (RMS), the world’s leading provider of products and services for the management of natural hazard risk, has announced that its independent risk analysis of securitized collateral has enabled Hartford Fire Insurance Company (HFIC) to purchase reinsurance cover supported by the issuance of $105 million Class D notes issued by Foundation Re, Ltd. from its $750 million catastrophe bond program.

The Class D notes, along with proceeds from previously issued offerings, will serve to provide HFIC with a source of indexed cover for earthquake and hurricane losses in the United States over a four-year period, as determined by the Property Claims Service (PCS).

Each class of notes covers a proportional share of layered earthquake and hurricane losses. The Class D variable rate notes due February 24, 2010 have been assigned a “BB” senior secured debt rating by Standard & Poor’s.

“This transaction reflects RMS’ continued commitment to facilitating the growth and liquidity of the catastrophe bond market,” said Peter Nakada, managing director of RMS Consulting.

The RMS peril model assessment of underlying assets of the Class D notes applied weightings according to risk exposure by state and by line of business. The Class D notes cover a 26.25% quota share of catastrophic earthquake and hurricane index losses in the range of $1.34 -$1.74 billion. The RMS analysis determined that the Class D notes have an annual probability of attachment of 1.59% and a four-year probability of attachment of 6.21%.

“We expect to see more and more transactions like this resulting from a virtuous cycle of increased issuance, better liquidity, heightened investor demand, and lower all-in-cost,” Mr. Nakada added.