A.M. Best Upgrades Ratings of Family Heritage Life Insurance Company of America

  A.M. Best Upgrades Ratings of Family Heritage Life Insurance Company of

Business Wire

OLDWICK, N.J. -- November 13, 2012

A.M. Best Co. has upgraded the financial strength rating (FSR) to A
(Excellent) from B++ (Good) and issuer credit rating (ICR) to “a” from “bbb+”
of Family Heritage Life Insurance Company of America (Family Heritage)
(Cleveland, OH). The ratings have been removed from under review with positive
implications and assigned a stable outlook.

Family Heritage’s ratings were placed under review following the announcement
that it had signed a definitive agreement to be acquired by Torchmark
Corporation (Torchmark) (headquartered in McKinney, TX) (NYSE: TMK). The
transaction closed on November 1, 2012.

The rating upgrades reflect the financial strength of the Torchmark
organization as well as A.M. Best’s expectations of continued strong
stand-alone capitalization and favorable trends in sales and earnings for
Family Heritage. As a result of the acquisition, Torchmark gains access to
Family Heritage’s 1,200 captive agents and roughly 239,000 policies in force.
A.M. Best notes that the acquisition provides Torchmark with the ability to
expand its supplemental health business segment with a higher margin, return
of premium product feature.

A.M. Best believes Family Heritage will benefit from having a strong parent
with a recognized brand. Its new owner should help improve agent recruiting
and facilitate geographical expansion as well as provide capital to fund
anticipated premium growth within Family Heritage, as needed. Initially,
Family Heritage will represent only a modest portion of Torchmark’s overall
revenue and earnings. Torchmark will utilize Family Heritage as a platform for
return of premium products going forward.

The FSRs, ICRs and existing debt ratings of Torchmark and its other six
life/health subsidiaries are unchanged. The outlook for these ratings is

The methodology used in determining these ratings is Best’s Credit Rating
Methodology, which provides a comprehensive explanation of A.M. Best’s rating
process and contains the different rating criteria employed in the rating
process. Best’s Credit Rating Methodology can be found at

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.
Tom Zitelli, 908-439-2200, ext. 5412
Senior Financial Analyst
Tom Rosendale, 908-439-2200, ext. 5201
Assistant Vice President
Rachelle Morrow, 908-439-2200, ext. 5378
Senior Manager, Public Relations
Jim Peavy, 908-439-2200, ext. 5644
Assistant Vice President, Public Relations
Press spacebar to pause and continue. Press esc to stop.