A.M. Best Affirms Ratings of Philadelphia Financial Life Assurance Company and Its Subsidiary

<p><location value="LU/us.nj.oldick" idsrc="xmltag.org">OLDWICK, N.J.</location>--(BUSINESS WIRE)-- <b><org>A.M. Best Co.</org></b> has affirmed the financial strength rating of A- (Excellent) and issuer credit ratings of “a-” of <b><org>Philadelphia Financial Life Assurance Company</org></b> (<location value="LU/us.pa.phldph" idsrc="xmltag.org">Philadelphia, PA</location>) and its subsidiary, <b><org>Philadelphia Financial Life Assurance Company of New York</org></b>(<location value="LU/us.ny.nyc" idsrc="xmltag.org">New York, NY</location>), together referred to as Philadelphia Financial. The outlook for all ratings is stable. </p><p> The affirmation of the ratings reflects Philadelphia Financial’s established position within the individual ultrahigh net worth and institutional private placement markets, solid risk-adjusted capitalization and progress made over the past year in rebranding the organization and expanding its distribution capabilities on a national level. Additionally, the ratings reflect the company’s conservative investment portfolio, which primarily comprises separate account assets, and the current financial flexibility of its ultimate parent, <org value="ACORN:1120078799" idsrc="xmltag.org">Tiptree Financial Partners, LP</org>. </p><p class="bwalignl"> These strengths are partially offset by the group’s limited – albeit improving – business profile and relatively modest operating results. In addition, although surrender rates appear to have stabilized, A.M. Best believes Philadelphia Financial needs to remain proactive with respect to retention practices to ensure this favorable trend continues. Finally, given current economic conditions, A.M. Best does not believe premium flow will approach historic levels in the near term. A.M. Best notes that top line revenue growth remains highly dependent upon the company’s ability to realize productivity from its new distribution relationships and its planned expansion into high net worth G7 countries. </p><p> The principal methodology used in determining these ratings is <a href="http://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.ambest.com%2Fratings%2Fmethodology%2Fbcrm.pdf&esheet=50014121&lan=en-US&anchor=Best%27s+Credit+Rating+Methodology+--+Global+Life+and+Non-Life+Insurance+Edition&index=1&md5=e5bb38aae57324bc0e7181a6fcd33fbd">Best’s Credit Rating Methodology -- Global Life and Non-Life Insurance Edition</a>, which provides a comprehensive explanation of A.M. Best’s rating process and highlights the different rating criteria employed. Additional key criteria utilized include “Understanding BCAR for Life/Health Insurers”; “Rating Members of Insurance Groups”; “A.M. Best’s Liquidity Model for U.S. Life Insurers”; and “Risk Management and the Rating Process for Insurance Companies.” Methodologies can be found at <a href="http://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.ambest.com%2Fratings%2Fmethodology&esheet=50014121&lan=en-US&anchor=www.ambest.com%2Fratings%2Fmethodology&index=2&md5=ef2371adc5151a96a05224dd9a5b6a4d">www.ambest.com/ratings/methodology</a>. </p><p><b>Founded in 1899, A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit </b><a href="http://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.ambest.com%2F&esheet=50014121&lan=en-US&anchor=www.ambest.com&index=3&md5=bb63a448c2de49356e71fb77465eeced">www.ambest.com</a>. </p><p class="bwalignc"><b>Copyright © 2011 by A.M. Best Company, Inc.</b><b>ALL RIGHTS RESERVED.</b></p><p class="bwalignc"></p><p><img alt="" src="http://cts.businesswire.com/ct/CT?id=bwnews&sty=20110930005838r1&sid=acqr4&distro=nx" /><span class="bwct31415" /></p><p><b><org>A.M. Best Co.</org></b><br /><b><person>Ken Johnson</person>, CFA, CTP</b><br /><b>Senior Financial Analyst</b><br /><b>908-439-2200, ext. 5056</b><br /><a href="mailto:ken.johnson@ambest.com">ken.johnson@ambest.com</a><br /><b>or</b><br /><b><person>Rosemarie Mirabella</person>, CPA, CFA</b><br /><b>Managing Senior Financial Analyst</b><br /><b>908-439-2200, ext. 5892</b><br /><a href="mailto:rosemarie.mirabella@ambest.com">rosemarie.mirabella@ambest.com</a><br /><b>or</b><br /><b><person>Chris Sharkey</person></b><br /><b>Business Analyst</b><br /><b>908-439-2200, ext. 5159</b><br /><a href="mailto:christopher.sharkey@ambest.com">christopher.sharkey@ambest.com</a><br /><b>or</b><br /><b><person>Jim Peavy</person></b><br /><b>Assistant Vice President, Public Relations</b><br /><b>908-439-2200, ext. 5644</b><br /><a href="mailto:james.peavy@ambest.com">james.peavy@ambest.com</a></p><p class="bwalignc"></p><p>Source: <org>A.M. Best Co.</org></p>