AM Best Revises Outlooks to Stable for Mountain Life Insurance Company

OLDWICK, N.J.--(BUSINESS WIRE)-- AM Best has revised the outlooks to stable from negative and affirmed the Financial Strength Rating of B+ (Good) and the Long-Term Issuer Credit Rating of “bbb-” of Mountain Life Insurance Company (Mountain Life) (Lexington, KY).

The Credit Ratings (ratings) reflect Mountain Life’s balance sheet strength, which AM Best categorizes as strong, as well as its marginal operating performance, limited business profile and appropriate enterprise risk management.

The revised outlooks to stable from negative reflect the continued progress regarding the integration of Mountain Life into the Kentucky National Insurance Group (Kentucky National). At this time, AM Best’s concern over execution risk leading to a deterioration in Mountain Life’s ratings has been reduced based on discussions with the new management team and Mountain Life’s results since the time of the transaction close in early 2018. AM Best has held discussions with the new management team related to business plans, strategy, and the integration of Mountain Life into the Kentucky National organization. Mountain Life’s ratings continue to be supported by solid risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), and its strong liquidity afforded by the company’s conservative investment portfolio. Offsetting factors include Mountain Life’s modest overall earnings and declining premium trends, and its concentrated business profile in the credit insurance arena. AM Best will continue to monitor Kentucky National’s business plan for Mountain Life and the company’s ability to carry out its stated plans and projections.

This press release relates to Credit Ratings that have been published on AM 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 AM 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. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.

AM Best is a global rating agency and information provider with a unique focus on the insurance industry. Visit www.ambest.com for more information.

Copyright © 2019 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

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Jason Mackenzie

Financial Analyst

+1 908 439 2200, ext. 5649

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William Pargeans

Director

+1 908 439 2200, ext. 5359

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Christopher Sharkey

Manager, Public Relations

+1 908 439 2200, ext. 5159

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Jim Peavy

Director, Public Relations

+1 908 439 2200, ext. 5644

[email protected]

Source: AM Best