A.M. Best Revises Issuer Credit Rating Outlook to Positive for LifeShield National Insurance Co.

OLDWICK, N.J.--(BUSINESS WIRE)-- A.M. Best has revised the outlook to positive from stable for the Long-Term Issuer Credit Rating (Long-Term ICR) and affirmed the Financial Strength Rating (FSR) of B++ (Good) and the Long-Term ICR of “bbb” of LifeShield National Insurance Co. (LifeShield) (Oklahoma City, OK). The outlook of the FSR remains stable.

The revised outlooks reflect the progress LifeShield has made in growing premiums, expanding distribution and strengthening capital, as well as the potential over the next couple of years for realizing additional top-line growth through execution of its strategic initiatives. In recent years, the company has generated good profitability with improving returns, which has resulted in organic capital growth.

The Credit Rating (rating) affirmations continue to reflect LifeShield’s improving risk-adjusted capitalization and continued positive net income and premium growth. The ratings also reflect the strategic benefits derived from LifeShield’s relationships with MidFirst Bank and Midland Mortgage, a division of MidFirst Bank, which historically has provided a stable market base for LifeShield's business growth.

Partially offsetting these rating factors are LifeShield’s heavy dependence on a single partnership for net premiums, a modest level of absolute capital and the challenges to sustain and improve its net operating performance, as well as to manage its long-term bond portfolio that includes elevated, though declining, levels of below investment grade bonds relative to total capital.

This press release relates to Credit Ratings 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 see A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings.

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

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A.M. Best

Peter Kelly, +1 908 439 2200, ext. 5834

Senior Financial Analyst

peter.kelly@ambest.com

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Thomas Rosendale, +1 908 439 2200, ext. 5201

Director

thomas.rosendale@ambest.com

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Christopher Sharkey, +1 908 439 2200, ext. 5159

Manager, Public Relations

christopher.sharkey@ambest.com

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Jim Peavy, +1 908 439 2200, ext. 5644

Director, Public Relations

james.peavy@ambest.com

Source: A.M. Best