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FOR IMMEDIATE RELEASE
OLDWICK, N.J. - MAY 31, 2007 12:00 AM (EDT)
A.M. Best Co. has affirmed the financial strength rating (FSR) of A- (Excellent) and issuer credit ratings (ICR) of "a-" of American Modern Life Insurance Company (American Modern Life) (Cincinnati, OH), the lead life insurer within the American Modern Insurance Group (American Modern). The outlook for these ratings is stable. Additionally, A.M. Best has upgraded the FSR to B++ (Good) from B+ (Good) and assigned an ICR of "bbb" to American Modern Life's subsidiary, Southern Pioneer Life Insurance Company (Southern Pioneer Life) (Trumann, AR). The FSR has been removed from under review with positive implications, and the outlook assigned to both the FSR and ICR is stable.
The upgrade of the FSR for Southern Pioneer Life reflects a change in its ownership by American Modern Life, as well as its potentially strategic significance for the American Modern Insurance Group. A.M. Best anticipates that Southern Pioneer Life will serve as a key marketing channel for credit insurance for American Modern Insurance Group while providing an additional avenue of growth for American Modern Life.
The rating affirmations of American Modern Life reflect its strategic role as the provider of credit life and credit accident and health insurance platform for the American Modern Insurance Group. The ratings also recognize the company's adequate risk-adjusted capitalization, positive statutory operating results and access to the financial flexibility of its publicly traded ultimate parent, Midland Company. Partially offsetting these positive rating factors is the company's modest business profile and its focus on the limited growth opportunity business of credit insurance.
For Best's Ratings, an overview of the rating process and rating methodologies, please visit Best's Rating Center.
Founded in 1899, A.M. Best Company is a full-service credit rating organization dedicated to serving the financial services industries, including the banking and insurance sectors.