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FOR IMMEDIATE RELEASE
OLDWICK, N.J. - AUGUST 05, 2004 12:00 AM (EDT)
A.M. Best Co. has affirmed the financial strength rating of A- (Excellent) of Security Financial Life Insurance Company the operating affiliate of Security Mutual Life Nebraska Holding Co. A.M. Best has also affirmed the financial strength ratings of A- (Excellent) of Assurity Life Insurance Company and Lincoln Direct Life Insurance Company, both operating affiliates of Lincoln Insurance Group, Inc. These affirmations follow the announcement that the Boards of Directors have voted to merge their mutual life insurance holding companies. The new combined holding company will be named Assurity Security Group, Inc. All companies are located in Lincoln, NE. The outlook for the ratings has been revised to positive from stable.
The revision of the outlook reflects A.M. Best's expectation that the combined organization will benefit from economies of scale, opportunities to cross-sell products to an expanded policyholder base and increased financial flexibility.
Both organizations currently provide a variety of life, disability and annuity insurance products through multiple distribution channels. Within Lincoln Insurance Group, Assurity Life markets individual life, annuities and disability products through brokerage and worksite distribution systems, while Lincoln Direct is a direct response marketer of term and modified benefit whole life insurance products. In recent years, Lincoln Insurance Group has effectively expanded both the brokerage distribution system and worksite marketing efforts as part of its strategy to broaden its distribution base. In addition, the company has grown through block acquisitions of individual disability income business, which has increased scale and expands its market share in this core line.
Security Financial Life is structured with three core distribution channels, which include Career Agency and Special Markets, Worksite Products and Pension/Group Life Insurance. The company offers a wide array of life and annuity products to both individuals and groups. Security Financial Life has successfully leveraged its flexible product and service platform to take advantage of niche marketing opportunities, while establishing sound operations in the worksite and pension markets.
The subsidiaries will continue to be managed as separate operating companies under one holding company. The merger of the mutual holding companies is pending approval from the Nebraska Department of Insurance, as well as from policyholders/members. The merger is expected to be completed by January 1, 2005.
A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source.