A.M. Best Places Ratings of Family Heritage Life Insurance Company of America Under Review With Positive Implications

OLDWICK, N.J.--(BUSINESS WIRE)-- A.M. Best Co. has placed under review with positive implications the financial strength rating (FSR) of B++ (Good) and issuer credit rating (ICR) of “bbb+” of Family Heritage Life Insurance Company of America(Family Heritage) (Cleveland, OH) following the announcement that it has signed a definitive agreement to be acquired by Torchmark Corporation (Torchmark) (McKinney, TX) [NYSE: TMK] for approximately $218.5 million in cash, subject to closing adjustments.

Family Heritage is a privately-held company with an established market niche selling supplemental health products to families, farms and small businesses, primarily in rural communities. Over the last several years, the company has experienced favorable trends in premium revenue and earnings while maintaining sound risk-adjusted capitalization on a stand-alone basis.

Family Heritage’s focus on selling protection-oriented products to middle income Americans is consistent with Torchmark’s target market, which is penetrated through multiple distribution channels. As such, A.M. Best believes Family Heritage’s captive agency force will enhance Torchmark’s current distribution platform. Additionally, Family Heritage should benefit from the resources and financial strength of Torchmark, whose life/health operating subsidiaries possess FSRs of A+ (Superior) and ICRs of “aa-.”

Family Heritage’s ratings will remain under review pending the completion of the transaction (expected in the fourth quarter of 2012) and A.M. Best’s discussions with Torchmark with respect to management’s future business and integration plans for Family Heritage.

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.

Founded in 1899, 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 © 2012 by A.M. Best Company, Inc.ALL RIGHTS RESERVED.

A.M. Best Co.
Tom Zitelli
Senior Financial Analyst
(908) 439-2200, ext. 5412
[email protected]
or
Rachelle Morrow
Senior Manager, Public Relations
(908) 439-2200, ext. 5378
[email protected]
or
Jeffrey Lane
Managing Senior Financial Analyst
(908) 439-2200, ext. 5567
[email protected]
or
Jim Peavy
Assistant Vice President, Public Relations
(908) 439-2200, ext. 5644
[email protected]

Source: A.M. Best Co.

Business Wire, Inc.

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