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FOR IMMEDIATE RELEASE
OLDWICK, N.J. - FEBRUARY 17, 2011 12:00 AM (EST)
A.M. Best Co. has assigned a financial strength rating of A (Excellent) and issuer credit rating of "a" to Patriot Life Insurance Company (Patriot Life) (Frankenmuth, MI), a subsidiary of Frankenmuth Mutual Insurance Company (Frankenmuth). The outlook assigned to both ratings is stable.
The ratings of Patriot Life reflect the formal guaranty issued by Frankenmuth with respect to Patriot Life's liabilities. In addition, the parent also provides administrative expertise and distribution channels for the growth of Patriot Life's ordinary life business. A.M. Best anticipates that Patriot Life will begin marketing an ordinary life portfolio through Frankenmuth's independent agency force. These products are planned to complement the parent's personal lines property/casualty products.
The ratings also acknowledge the challenges and execution risk associated with a start-up life operation. Currently, Patriot Life is managing a closed block of inforce whole life policies.
The principal methodology used in determining these ratings is Best's Credit Rating Methodology - Global Life and Non-Life Insurance Edition, which provides a comprehensive explanation of A.M. Best's rating process and highlights the different rating criteria employed. Additional key criteria utilized include: "Risk Management and the Rating Process for Insurance Companies"; "Assessing Country Risk"; "A.M. Best's Liquidity Model for U.S. Life Insurers"; and "Rating Members of Insurance Groups." Methodologies can be found at www.ambest.com/ratings/methodology.
Founded in 1899, A.M. Best Company is the world's oldest and most authoritative insurance rating and information source.