A.M. Best Revises Outlook to Stable of Beneficial Life Insurance Company

A.M. Best Co. has revised the outlook to stable from negative and affirmed the financial strength rating of A- (Excellent) and issuer credit rating of “a-” of Beneficial Life Insurance Company (Beneficial Life) (Salt Lake City, UT).

The ratings reflect Beneficial Life’s strong capitalization, positive operating earnings and demonstrated support through its affiliation with The Church of Jesus Christ of Latter-day Saints (The Church). While it is important to note that A.M. Best did not review the financials statements of The Church or Deseret Management Corporation’s (DMC) immediate parent, DMC Reserve Trust, A.M. Best did review the 2009 audited financials of Beneficial Life’s immediate parent DMC, which provided the cash capital infusions into Beneficial Life.

Based upon discussions with management and the financial statement review, A.M. Best believes the company would have access to further support to mitigate any potential material adverse performance of its invested asset portfolio during this difficult economic climate.

Partially offsetting these positive rating factors is an operating profile that has interest rate and credit risk resulting from above average exposure to structured securities, and impairments associated with mortgage-backed holdings and other structured securities and a modified business profile, as Beneficial Life and DMC have made the strategic decision to reduce their exposure to the life insurance industry by discontinuing the issuance of new policies in late 2009.

For Best’s Credit Ratings, an overview of the rating process and rating methodologies, please visit http://www.ambest.com/ratings.

The principal methodologies used in determining these ratings, including any additional methodologies and factors that may have been considered, can be found at http://www.ambest.com/ratings/methodology.