A.M. Best Comments on the Ratings of MTL Insurance Company Following Merger Announcement

As a result of the merger, MTHC and MTL Holdings Inc.,MTL’s intermediate holding company, will be merged into PALMHC and Pan-American Life Insurance Group, Inc.(PALIG), PALIC’s intermediate holding intermediate holding company, respectively. Additionally the $10.9 million of trust preferred securities held at MTL Holdings Inc. will be assumed by PALIG.

A.M. Best expects that MTL will operate as a stand-alone entity, providing PALIG with geographic diversification and potential distribution relationships to expand into the U.S. Going forward, A.M. Best’s will assess any changes to the business strategy for MTL and its implications for revenue and earnings growth over time, as well as any potential synergies with its new parent.

The methodology used in determining these ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best’s rating process and contains the different rating criteria employed in the rating process. Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.

Key insurance criteria reports utilized:

• A.M. Best's Perspective on Operating Leverage

• Equity Credit for Hybrid Securities

• Evaluating U.S. Surplus Notes

• Insurance Holding Company and Debt Ratings

• Rating Members of Insurance Groups

• Risk Management and the Rating Process for Insurance Companies

• Understanding BCAR for U.S. and Canadian Life/Health Insurers

This press release relates to rating(s) that have been published on A.M. Best's website.For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please visit A.M. Best’s Ratings & Criteria Center.

A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

Copyright © 2015 by A.M. Best Company, Inc.ALL RIGHTS RESERVED.

A.M. Best

Keith Behrmann

Financial Analyst

908-439-2200, ext. 5733

keith.behrmann@ambest.com

or

Rosemarie Mirabella

Assistant Vice President

908-439-2200, ext. 5892

rosemarie.mirabella@ambest.com

or

Christopher Sharkey

Manager, Public Relations

908-439-2200, ext. 5159

christopher.sharkey@ambest.com

or

Jim Peavy

Assistant Vice President, Public Relations

908-439-2200, ext. 5644

james.peavy@ambest.com

Source: A.M. Best