AM Best


A.M. Best Revises Outlook to Negative and Affirms Ratings of Insurance Subsidiaries of Harris Insurance Holdings, Inc.


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Carl Austin

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Jim Peavy

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FOR IMMEDIATE RELEASE

OLDWICK, N.J. - MARCH 23, 2010 12:00 AM (EDT)
A.M. Best Co. has revised the outlook to negative from stable and affirmed the financial strength ratings of B+ (Good) and issuer credit ratings of "bbb-" of Central United Life Insurance Company (Central United) (Little Rock, AR), The Manhattan Life Insurance Company (Manhattan Life) (Great Neck, NY), Family Life Insurance Company (Family Life) (Houston, TX) and Investors Consolidated Insurance Company (Investors Consolidated) (Concord, NH). All companies are subsidiaries of Harris Insurance Holdings, Inc. (Houston, TX).

The outlook change reflects the noticeable drop in lead company Central United's 2009 risk-adjusted capital position. In the second half of 2009, Central United purchased the remaining outstanding shares of an affiliated holding company, Manhattan Insurance Group, Inc. While the purchase simplified the organizational structure, it also caused its affiliated investments to be disproportionate to the company's capital and surplus position. Management is currently working on executing a plan to strengthen its capital position and reduce affiliated investments. Additionally, Central United remains challenged in managing a few older cancer insurance blocks, which have experienced some weakness from time to time.

The rating affirmations reflect the companies' good overall historical operating results and the organization's successful history of managing various types of acquired life and health insurance blocks of business. Additionally, the companies have been successful in controlling general expenses and have been proactive in gaining regulatory approval for rate increases whenever necessary.

For Best's Credit Ratings, an overview of the rating process and rating methodologies, please visit Best's Ratings & Analysis.

The principal methodologies used in determining these ratings, including any additional methodologies and factors that may have been considered, can be found at Best's Credit Rating Methodology.

Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers.

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