A.M. Best Places Ratings of Medico Insurance Company 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 of B- (Fair) and issuer credit rating of “bb-” of Medico Insurance Company (Medico) (Omaha, NE). Medico is a wholly owned subsidiary of the Medico Mutual Insurance Holding Company.

The rating actions reflect the announcement of American Enterprise Group, Inc.’s(American Enterprise) intent to have Medico join the American Enterprise Mutual Holding Company organization. American Republic Insurance Company is the lead company of American Enterprise. The transaction is anticipated to close by June 30, 2012, pending the conclusion of a satisfactory due diligence process, as well as the approval of the members of Medico Mutual Insurance Holding Company and regulatory approvals. A.M. Best believes Medico will benefit from being part of American Enterprise, which has considerable financial resources and is a recognized name in the Medicare supplement market. Medico will continue to market senior life/health insurance products, including Medicare supplement insurance through its independent field force.

Medico’s ratings will remain under review with positive implications until the transaction is completed.

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”; “Rating Health Insurance Companies”; “Understanding BCAR for Life/Health Insurers”; and “Assessing Country Risk.” 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. For more information, visit www.ambest.com.

Copyright © 2012 by A.M. Best Company, Inc.ALL RIGHTS RESERVED.

A.M. Best Co.Brian Virostek, 908-439-2200, ext. 5531
Financial Analyst
[email protected]
orCarl Austin, 908-439-2200, ext. 5500
Assistant Vice President
[email protected]
orRachelle Morrow, 908-439-2200, ext. 5378
Senior Manager, Public Relations
[email protected]
orJim Peavy, 908-439-2200, ext. 5644
Assistant Vice President, Public Relations
[email protected]

Source: A.M. Best Co.