AM Best

A.M. Best Comments on Physicians Mutual Insurance Company's Proposed Purchase of Reserve National Insurance Company

Brian Virostek
(908) 439-2200, ext. 5531

Jeffrey Lane
(908) 439-2200, ext. 5567

Public Relations
Rachelle Morrow
(908) 439-2200, ext. 5378

Jim Peavy
(908) 439-2200, ext. 5644


OLDWICK, N.J. - MARCH 03, 2010 01:30 PM (EST)
A.M. Best Co. has commented that the financial strength rating of A (Excellent) and issuer credit rating of "a+" of Physicians Mutual Insurance Company (Physicians Mutual) (Omaha, NE) are unchanged. The stable rating outlook also is unchanged.

This comment follows the recent announcement of Physicians Mutual's agreement in principle to purchase Reserve National Insurance Company (Reserve National) a life/health subsidiary of Unitrin, Inc. If the transaction proceeds, it is expected to close by the end of second quarter 2010.

Reserve National markets hospital indemnity, Medicare supplement and other supplemental accident and health insurance products primarily to individuals and small businesses in rural areas of the United States. Physicians Mutual maintains more than adequate surplus for its current ratings to fund this proposed transaction, which is consistent with its strategic position in the supplemental health and senior markets.

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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