CHICAGO–(BUSINESS WIRE)–Fitch Ratings has downgraded the Insurer Financial Strength (IFS) ratings of American International Group, Inc.’s domestic non-life insurance subsidiaries to ‘A’ from ‘A+’. Fitch has concurrently affirmed AIG’s Issuer Default Rating (IDR) rating and debt ratings as well as life insurance subsidiaries’ IFS ratings. The Outlook for all ratings is Stable. A complete list of ratings is included at the end of this commentary.

The downgrades follow yesterday’s announcement by AIG that it expects to report a $4.1 billion pretax charge in the fourth quarter 2010 to increase its domestic non-life insurance subsidiaries’ reserves for prior-accident years.

The rating actions reflect Fitch’s view that the volatility of AIG’s domestic non-life subsidiaries’ reserves is inconsistent with expectations for the ‘A+’ ratings level.

The agency views AIG’s recent record of adverse reserve development as a significant outlier relative to that of the company’s large commercial insurance lines competitors and to the overall non-life insurance market. Fitch believes that this is partially attributable to AIG’s larger than its peers’ market share in long-duration excess casualty and workers compensation business lines which presents significant and unique reserving challenges. The agency notes that AIG has reduced these business lines’ relative contribution to the company’s overall non-life premium base with a goal that this could contribute to more stable reserves going forward.

Fitch believes that AIG’s domestic non-life insurance subsidiaries’ recent history of reporting significant adverse reserve development raises concerns about the companies ability to generate consistent run-rate underwriting results commensurate with their previous ratings. Fitch notes that while a majority of the reserve charge is attributable to older accident years, reserves for more recent accident years have also developed adversely.

Favorably, management has indicated that the effect of the reserve charge on AIG’s non-life subsidiaries’ capitalization will be partially offset by a $2 billion capital injection funded from proceeds generated by the recently completed sales of AIG Star Life Insurance Co. Ltd. and AIG Edison Life Insurance Company.

Fitch has affirmed AIG’s parent company ratings reflecting the agency’s on-going belief that upon AIG’s emergence from ownership by the U.S. Treasury, the company’s capital structure and earnings profile have the potential to support ‘standard’ insurance holding company notching.

Key rating drivers that could produce revisions in Rating Outlooks to Positive or lead to upgrades in AIG’s stand-alone IDR or its subsidiaries’ IFS ratings include:

–Enhanced underwriting profitability and reserve stability of the company’s non-life insurance subsidiaries;

–Further stabilization of sales trends and profitability of the company’s domestic life insurance subsidiaries;

–Material increases in risk-based capital ratios at either the domestic life insurance or the non-life insurance subsidiaries;

–Further declines in outstanding notional values of AIG Financial Products Corp.’s (AIGFP) CDS portfolio without significant liquidity or capital drains. Such a decline would most directly affect Fitch’s view of AIG’s stand-alone IDR;

–Further clarity around AIG’s plans for its International Lease Finance Corp. (ILFC) subsidiary and how ILFC’s funding needs over the long term can be met without adding contingent risks to AIG’s profile;

–The transition of AIG’s capital structure and leverage to that of a more traditional insurance holding company resulting in a narrowing of the notching between insurance company ratings and holding company ratings. Under such a scenario as government support declines, per Fitch’s notching criteria, the IDR of the holding company would migrate to one notch higher than the senior unsecured debt rating.

Key rating drivers that could produce a revision in the Rating Outlook to Negative or lead to downgrades in AIG’s stand-alone IDR or its subsidiaries’ IFS rating include:

–Declines in underwriting profitability and heightened reserve volatility of the company’s non-life insurance subsidiaries that Fitch views as inconsistent with that of comparably-rated peers and industry trends;

–Deterioration in the company’s domestic life subsidiaries’ sales or profitability trends;

–Material declines in risk-based capital ratios at either the domestic life insurance or the non-life insurance subsidiaries;

–Evidence that AIGFP’s CDS portfolio run-off is not proceeding as currently envisioned;

–A deterioration in Fitch’s view of the implied rating support provided by the U.S. Treasury’s interests in AIG that is not fully offset from a rating perspective by improvements in AIG’s stand-alone financial profile. The agency believes that the most plausible situation under which this could occur would be a significant unwinding of the Treasury’s ownership position prior to further run-off of AIGFP’s CDS portfolio.

–AIG’s inability to transition its capital structure and leverage to those of a more traditional insurance holding company could result in a widening of the notching between the insurance subsidiary ratings and the holding company ratings. Under such a scenario as government support declines, per Fitch’s notching criteria AIG’s senior unsecured debt ratings would migrate to one notch lower than the holding company IDR rating.

Fitch has downgraded the following IFS ratings to ‘A’ from ‘A+’ and assigned Stable Outlooks:

–Chartis Property Casualty Company;

–American Home Assurance Company;

–Chartis Casualty Company;

–Commerce and Industry Insurance Company;

–Granite State Insurance Company;

–Illinois National Insurance Co.;

–National Union Fire Insurance Company of Pittsburgh, PA;

–New Hampshire Insurance Company;

–The Insurance Company of the State of Pennsylvania;

–Chartis Select Insurance Company;

–Landmark Insurance Company;

–Lexington Insurance Company;

–AIU Insurance Company;

–Chartis Specialty Insurance Company;

–Chartis MEMSA Insurance Company;

–Chartis UK Ltd.;

–Chartis Overseas, Limited.

Fitch has affirmed the following ratings with a Stable Outlook:

American International Group, Inc.

–Long-term IDR at ‘BBB’

–Senior debt at ‘BBB’;

–6.25% series A-1 junior subordinated debentures due March 15, 2087 at ‘B’;

–5.75% series A-2 junior subordinated debentures due March 15, 2067 at ‘B’;

–4.875% series A-3 junior subordinated debentures due March 15, 2067 at ‘B’;

–6.45% series A-4 junior subordinated debentures due June 15, 2077 at ‘B’;

–7.700% series A-5 junior subordinated debentures due Dec. 18, 2062 at ‘B’;

–8.175% series A-6 junior subordinated debentures due May 15, 2058 at ‘B’;

–8.00% series A-7 junior subordinated debentures due May 22, 2038 at ‘B’;

–8.625% series A-8 junior subordinated debentures due May 22, 2068 at ‘B’;

–5.67% series B-1 debentures due Feb. 15, 2041 at ‘B’

–5.82% series B-2 debentures due May 1, 2041 at ‘B’;

–5.89% series B-3 debentures due Aug. 1, 2041 at ‘B’.

AIG International, Inc.

–Long-term IDR at ‘BBB’;

–Senior debt at ‘BBB’;

–5.60% senior unsecured notes due July 31, 2097 at ‘BBB’.

AIG Life Holdings (US), Inc.

–Long-term IDR at ‘BBB’;

–7.50% senior unsecured notes due July 15, 2025 at ‘BBB’;

–6.625% senior unsecured notes due Feb. 15, 2029 at ‘BBB’.

American General Capital II

–8.50% preferred securities due July 1, 2030 at ‘BB-’.

American General Institutional Capital A

–7.57% capital securities due Dec. 1, 2045 at ‘BB-’.

American General Institutional Capital B

–8.125% capital securities due March 15, 2046 at ‘BB-’.

Fitch has affirmed the following IFS ratings at ‘A-’ with a Stable Outlook:

–AGC Life Insurance Company;

–Western National Life Insurance Company;

–SunAmerica Annuity and Life Assurance Company;

–American General Life and Accident Insurance Company;

–American General Life Insurance Company;

–First SunAmerica Life Insurance Company;

–SunAmerica Life Insurance Company;

–The United States Life Insurance Company in the City of New York;

–The Variable Annuity Life Insurance Company.

ASIF II Program

ASIF III Program

ASIF Global Financing

–Program ratings at ‘A-’.

Additional information is available at ‘www.fitchratings.com‘.

Applicable Criteria and Related Research:

–’Insurance Rating Methodology’, dated Aug. 13, 2010;

–’Life Insurance Rating Methodology’, dated March 24, 2010;

–’Non-Life Insurance Rating Methodology’ dated March 24, 2010;

–’Insurance Industry: Global Notching Methodology and Recovery Analysis’ dated Dec. 29, 2009.

Applicable Criteria and Related Research:

Insurance Rating Methodology

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=547766

Life Insurance Rating Methodology

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=506285

Non-Life Insurance Rating Methodology

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=506369

Insurance Industry: Global Notching Methodology and Recovery Analysis

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=493114

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY’S PUBLIC WEBSITE ‘WWW.FITCHRATINGS.COM‘. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH’S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE ‘CODE OF CONDUCT’ SECTION OF THIS SITE.

WEST DES MOINES, Iowa–(BUSINESS WIRE)– FBL Financial Group, Inc. (NYSE: FFG) today announced that Standard & Poor’s Ratings Services has assigned ‘A-’ financial strength ratings to its subsidiaries Farm Bureau Life Insurance Company and EquiTrust Life Insurance Company. At the same time, Standard & Poor’s assigned a BBB- counterparty credit rating to FBL Financial Group, Inc. The outlooks are Stable.

“The ratings provided by Standard & Poor’s are another form of external validation of our financial strength and the continued progress we have made as an organization,” saidJames E. Hohmann, FBL’s Chief Executive Officer.

According to Standard & Poor’s, the ratings reflect Farm Bureau Life and EquiTrust Life’s strong competitive position in their target markets as well as strong and improving operating performance.

FBL Financial Group is a holding company whose primary operating subsidiaries are Farm Bureau Life Insurance Company and EquiTrust Life Insurance Company. FBL Financial Group underwrites, markets and distributes life insurance, annuities and mutual funds to individuals and small businesses. In addition, FBL Financial Group manages all aspects of two Farm Bureau affiliated property-casualty insurance companies for a management fee. For more information, please visit www.fblfinancial.com.

FFG-1

FBL Financial Group, Inc.
Kathleen Till Stange, Investor Relations Vice President
515-226-6780, Kathleen.TillStange@FBLFinancial.com

Source: FBL Financial Group, Inc.

OLDWICK, N.J.–(BUSINESS WIRE)–A.M. Best Co. has affirmed the financial strength rating of B+ (Good) and issuer credit ratings of “bbb-” of AmFirst Insurance Company (AmFirst) (Oklahoma City, OK) and Monitor Life Insurance Company of New York (Monitor) (Utica, NY). The outlook for AmFirst’s ratings is stable, and the outlook for Monitor’s ratings has been revised to stable from negative.

“Understanding BCAR for Life and Health Insurers”

AmFirst closed on its acquisition of Monitor on January 1, 2011. The revised outlook on Monitor Life reflects its expected reduced administrative cost burden as part of AmFirst, its projected premium and earnings growth, as well as capital support from its new parent. Subsequent to the acquisition, the company had an immediate capital infusion of approximately $600,000 in order to bring capital and surplus to acceptable levels for all state minimum requirements. AmFirst also received a contribution of capital from its owners of about $2 million at year-end 2010. Both of these infusions evidence management’s commitment to maintain appropriate capital based on business growth and regulatory requirements.

Monitor’s acquisition will immediately allow AmFirst to begin writing business in 13 states where it was not previously licensed. Monitor will commence its premium production by assuming supplemental medical premiums from AmFirst and its reinsurance partners, and will be filing with regulators to write AmFirst’s existing products. In addition, the group will begin quoting Monitor’s group term life insurance in conjunction with its supplemental medical and dental products.

The affirmation of AmFirst’s ratings recognizes the closing of its strategic initiative to acquire Monitor, which was initiated in June 2010. The acquisition also allows AmFirst to expand its demographic reach in which it markets its supplemental medical products and will add some diversification to its product mix. AmFirst did not incur any debt related to the purchase of Monitor and has exhibited consistent positive capital trends and operating performance in recent periods. A.M. Best will continue to monitor the strategic and financial impact of the acquisition on the group going forward.

The principal methodology used in determining these ratings is Best’s Credit Rating Methodology — Global Life and Non-Life Insurance Edition, which provides a comprehensive explanation of A.M. Best’s rating process and highlights the different rating criteria employed. Additional key criteria utilized include: “Risk Management and the Rating Process for Insurance Companies”; “Understanding BCAR for Life and Health Insurers”; “Rating Members of Insurance Groups”; and “Assessing Country Risk.” Methodologies can be found at www.ambest.com/ratings/methodology.

NEWPORT BEACH, Calif.–(BUSINESS WIRE)–Pacific Life Insurance Company continues to lead the competition in the sale of indexed universal life insurance (Indexed UL). Industry sales surveys from LIMRA International¹ and AnnuitySpecs.com² ranked the company number one in Indexed UL sales for the third quarter of 2010.

“Indexed UL offers an attractive balance between the upside potential of the equities markets without direct participation and the protection of the product’s minimum interest rate floors”

Pacific Life Insurance Company has been the top seller of IUL for five out of the past six quarters, according to LIMRA International. For seven out of the past eight quarters, Pacific Indexed Accumulator III³ has been named the top selling IUL product among the companies surveyed by AnnuitySpecs.com.

“Indexed UL offers an attractive balance between the upside potential of the equities markets without direct participation and the protection of the product’s minimum interest rate floors,” said Alyce Peterson, vice president of marketing services for the Life Insurance Division of Pacific Life. “Today’s clients seem to appreciate this strategy, so we continue to develop new features for this product line to help meet their needs.”

Life insurance professionals can learn more about opportunities for their clients through Pacific Life’s top-selling Indexed UL products by contacting their Pacific Life representative or calling 866-722-9555.

About Pacific Life

Offering insurance since 1868, Pacific Life provides a wide range of life insurance products, annuities, and mutual funds, and offers a variety of investment products and services to individuals, businesses, and pension plans. Pacific Life counts more than half of the 100 largest U.S. companies as its clients.⁴ For additional company information, including current financial strength ratings, visit Pacific Life online at www.PacificLife.com.

1. LIMRA International, Q3, 2010 Confidential Sales Survey of Participating Life Insurance Companies. Sales rankings are based on recurring premium as measured against 83 participating companies. “Recurring premium” measures expected annual premiums, which can be greater than the target premium.

2. AnnuitySpecs.com, Advantage Index Sales & Market Report, 3rd Quarter, 2010. Ranking based on target premium for 37 reporting indexed life insurance companies providing product level sales data.

3. Policy form #P08PI3. The policy does not directly participate in any stock or equity investments.

4. Client count as of April 2010 is compiled by Pacific Life using the 2010 FORTUNE 500® list.

Pacific Life refers to Pacific Life Insurance Company, and its affiliates, including Pacific Life & Annuity Company. Insurance products are issued by Pacific Life Insurance Company in all states except New York, and in New York by Pacific Life & Annuity Company. Product availability and features may vary by state. Each company is solely responsible for the financial obligations accruing under the products it issues. Product and rider guarantees are backed by the financial strength and claims paying ability of the issuing company. The home office for Pacific Life is located in Newport Beach, California.

OLDWICK, N.J.–(BUSINESS WIRE)– A.M. Best Co. has affirmed the financial strength rating (FSR) of A (Excellent) and issuer credit ratings (ICR) of “a” of Balboa Insurance Group (Balboa) and its property/casualty members, Balboa Insurance Company (BIC),Meritplan Insurance Company (both domiciled in Irvine, CA) and Newport Insurance Company (Phoenix, AZ).

Concurrently, A.M. Best has affirmed the FSRs of A- (Excellent) and ICRs of “a-” ofBalboa Life Insurance Company (Irvine, CA), Balboa Life Insurance Company of New York (New York, NY) (together known as Balboa Life) and General Fidelity Life Insurance Company (GFLIC) (Columbia, SC). The outlook for all ratings is stable.

All companies are owned by the BA Insurance Group, Inc., which is ultimately owned byBank of America Corporation (BAC) [NYSE: BAC].

The ratings and outlook of Balboa reflect its solid risk-adjusted capitalization, strong underwriting profitability and the organizational, operational and distribution support it derives from being owned by BAC. Partially offsetting these positive attributes are Balboa’s elevated underwriting leverage, significant aggregate exposure to catastrophe losses and the potential uncertain future within BAC.

Balboa continues to see substantial growth in its lender-placed business through large national independent financial institutions. However, from a business profile perspective, it highlights the group’s dependency upon BAC and other financial institutions for production of its business. A.M. Best also recognizes Balboa’s current “available-for-sale” status, as alluded to in the second quarter 2010 earnings call on July 16, which potentially redefines the group’s strategic importance within BAC. This move reflects BAC’s strategy to narrow the focus of the franchise, ensuring that every activity is core to the bank’s three customer groups—consumers, companies and institutional investors.

The ratings of Balboa Life recognize its continued strong levels of risk-adjusted capital, profitable operating results and an investment portfolio that provides a strong liquidity position. Balboa Life also benefits from the business opportunities afforded it through BAC. A.M. Best anticipates that the company will have more opportunities for business expansion through its marketing relationship with BAC.

Offsetting these strengths are Balboa Life’s continuing declining premium trends, challenges in penetrating its historic core business due to the downturn in the mortgage market and the modest results from its current strategic marketing initiatives. While A.M. Best acknowledges the business opportunities for Balboa Life through BAC, challenges do exist in executing a new business plan in the current business environment.

The ratings of GFLIC also are based on continued strong levels of risk-adjusted capital, profitable operating results and an investment portfolio that provides a strong liquidity position. In addition, GFLIC continues to grow net premiums written from assumed credit insurance business aligned to core BAC credit card services. Current assumed business is through a reinsurance arrangement with MBNA Canada and American Banker’s Life Assurance Company. This arrangement has offset the declining trends in credit insurance business for years prior to 2007. A.M. Best anticipates this business will be expanded to other international credit insurance business of BAC. GFLIC’s reliance on a single reinsurance source for nearly all of its business continues to be a concern.

The principal methodology used in determining these ratings is Best’s Credit Rating Methodology — Global Life and Non-Life Insurance Edition, which provides a comprehensive explanation of A.M. Best’s rating process and highlights the different rating criteria employed. Additional key criteria utilized include: “Risk Management and the Rating Process for Insurance Companies”; “Understanding BCAR for Property/Casualty Insurers”; “Rating Members of Insurance Groups”; “Assessing Country Risk”; “A.M. Best’s Liquidity Model for U.S. Life Insurers”; and “Update to BCAR for Life & Health Insurers.” Methodologies can be found at www.ambest.com/ratings/methodology.

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 © 2010 by A.M. Best Company, Inc.ALL RIGHTS RESERVED.

LONDON–(BUSINESS WIRE)–A.M. Best Europe – Rating Services Limited has affirmed the financial strength rating of A (Excellent) and issuer credit rating of “a” of Amlin AG(Switzerland) (formerly Amlin Bermuda Limited [ABL]). The outlook for both ratings is stable.

In October 2010, Amlin plc (Amlin), the holding company of the Amlin group, completed the establishment of a reinsurance platform in Zurich, Switzerland, to underwrite reinsurance business from European markets starting in 2011. A key part of this process was to re-domicile ABL (now Amlin AG) to Switzerland from Bermuda. Amlin’s Bermuda operation is now a branch of Amlin AG, which will accordingly operate through two divisions, Amlin Bermuda and Amlin Re Europe.

Amlin AG’s risk-adjusted capitalisation remains excellent despite significant dividend payments to its parent in 2009 and 2010. An increase in premium income is anticipated as Amlin Re Europe becomes established, but the company is expected to maintain an excellent level of risk-adjusted capitalisation.

Amlin Bermuda achieved an exceptional result in 2009, with low catastrophe losses and favourable prior-year reserve developments giving a profit of USD 391 million. The combined ratio was 57%, compared with 80% in 2008. Amlin Bermuda’s performance is enhanced by low management expenses and the quality of its account, a significant proportion of which comprises participation on business underwritten by Lloyd’s Syndicate 2001 (managed by Amlin Underwriting Limited). Syndicate 2001 has a history of strong profitability within Lloyd’s. It is anticipated that Amlin Re Europe will have little impact on performance in 2011 but over time will improve business diversification and earnings stability.

Amlin AG has an excellent business profile as part of the Amlin group. Amlin Bermuda writes predominantly a property reinsurance account comprising catastrophe, risk excess and proportional business. Approximately two-thirds of this business in 2009 was derived from the United States, with the remainder of the account having a good geographical spread. In addition to its internal group business, Amlin Bermuda writes a directly sourced account, which was 16% of group revenue in 2009. Effective 2011, Amlin Re Europe is expected to write a European property/casualty treaty book of business focused on small to mid-size businesses, contributing 10% of Amlin AG’s gross written premiums in 2011 and 20% in 2012.

The principal methodology used in determining these ratings is Best’s Credit Rating Methodology — Global Life and Non-Life Insurance Edition, which provides a comprehensive explanation of A.M. Best’s rating process and highlights the different rating criteria employed. Additional key criteria utilised include: “Risk Management and the Rating Process for Insurance Companies”; “Understanding BCAR for Property/Casualty Insurers”; “Understanding Universal BCAR”; “Rating Members of Insurance Groups”; and “Rating New Company Formations”. Methodologies can be found at www.ambest.com/ratings/methodology.

In accordance with Regulation (EC) No. 1060/2009, the following is a link to required disclosures: A.M. Best Europe – Rating Services Limited Supplementary Disclosure.

A.M. Best Europe – Rating Services Limited is a subsidiary of A.M. Best Company. 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 © 2010 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.

OLDWICK, N.J., Nov 04, 2010 (BUSINESS WIRE) — A.M. Best Co. has removed from under review with negative implications and affirmed the financial strength rating (FSR) of A+ (Superior) and issuer credit ratings (ICR) of “aa-” of the primary life/health insurance subsidiaries of MetLife, Inc. (MetLife) (New York, NY) (MET 41.54, -0.56, -1.33%). Concurrently, A.M. Best has removed from under review with negative implications and affirmed the ICR of “a-” and the existing debt ratings of MetLife.

In addition, A.M. Best has removed from under review with positive implications and upgraded the FSR to A+ (Superior) from A (Excellent) and the ICR to “aa-” from “a” of the newly acquired, American Life Insurance Company (ALICO) (Wilmington, DE). All ratings have been assigned a negative outlook. (Please see link below for a detailed listing of the companies and ratings.)

The rating actions follow MetLife’s November 1, 2010 acquisition of ALICO from American International Group, Inc. (AIG). The upgrading of the ratings of ALICO reflects its stable earnings stream, favorable risk-adjusted capital position and franchise value in a number of international markets. The rating actions also reflect A.M. Best’s view that ALICO will provide MetLife with meaningful new sources of earnings diversity as this acquisition will greatly enhance MetLife’s global life insurance presence, specifically in the Japanese market. While A.M. Best recognizes the potential long-term growth prospects and meaningful diversification this acquisition brings to MetLife, challenges exist with respect to MetLife effectively rebranding ALICO’s products, the heightened expenses associated with the integration, execution risks and the significant intangibles brought to MetLife’s balance sheet by this acquisition. A.M. Best will continue to monitor the effects of this transaction on earnings, top line growth and capital adequacy going forward, noting that the acquisition of ALICO shifts MetLife’s operating profile to be more heavily dependent on international markets.

ALICO’s approximately $16.2 billion purchase price was prudently financed with a combination of cash, MetLife equity securities and proceeds from debt issuances. Despite the additional debt offerings, MetLife’s leverage and coverage ratios remain within A.M. Best’s expectations for its current rating level.

The rating affirmations of MetLife recognize its positive operating earnings and net income as well as the company’s well established brand, diverse product mix, continued growth in various business segments and very strong competitive position in its core markets. Through third quarter 2010, MetLife’s fixed income portfolio recorded unrealized investment gains as the market recovered from previously depressed levels. Through its diversified distribution channels, MetLife maintains the scale and distribution capabilities necessary to be an industry leader in its various product lines. MetLife has demonstrated a track record of market share gains and solid top line growth in its core business lines.

The negative outlook acknowledges MetLife’s overall risk appetite and risk-adjusted capital position, which is viewed as somewhat low for its current rating level. A.M. Best continues to have concerns with the company’s exposure to real estate linked assets, primarily its large commercial mortgage loan portfolio and real estate holdings. In addition, while operating earnings are fairly stable, net income has experienced some volatility due to varying degrees of realized capital losses and changes in the underlying values of the company’s derivatives. A.M. Best believes MetLife’s future earnings will be pressured as the low interest rate environment continues. The company faces risk related to the continued low interest rate environment, which will put additional strain on interest sensitive product margins.

Additionally, A.M. Best has removed from under review with negative implications and affirmed the FSR of A (Excellent) and ICRs of “a+” of the MetLife Auto & Home companies, led by Metropolitan Property and Casualty Insurance Company (both domiciled in Warwick, RI) and its eight fully reinsured subsidiaries. The FSR has been assigned a stable outlook, while the ICRs have been assigned a negative outlook, reflecting the negative outlook on the group’s ultimate parent, MetLife.

The ratings of MetLife Auto & Home recognize its strong capitalization, consistently favorable operating performance, successful multiple-channel distribution network and extensive market expertise.

Partially offsetting these positive rating factors are the group’s moderately elevated underwriting leverage, a dividend policy that constrains surplus growth, as well as the group’s exposure to weather-related events.

Positive rating factors include the group’s geographic diversification and the marketing advantage it derives from the established brand name recognition of MetLife. In addition, the ratings acknowledge management’s focused operating strategy, extensive product knowledge and multiple distribution channels. The group consistently generates capital through disciplined underwriting and a steady stream of investment income.

For a complete list of MetLife Inc. and its subsidiaries’ FSRs, ICRs and debt ratings, please see www.ambest.com/press/110405metlife.pdf.

The principal methodology used in determining these ratings is Best’s Credit Rating Methodology — Global Life and Non-Life Insurance Edition, which provides a comprehensive explanation of A.M. Best’s rating process and highlights the different rating criteria employed. Additional key criteria utilized include: “Risk Management and the Rating Process for Insurance Companies”; “BCAR for Life and Health Insurers”; “Rating Members of Insurance Groups”; “A.M. Best’s Perspective on Operating Leverage”; “A.M. Best Ratings and The Treatment of Debt”; “Equity Credit for Hybrid Securities”; “Understanding BCAR for Property/Casualty Insurers”; “Natural Catastrophe Stress Testing Methodology”; “Catastrophe Analysis in A.M. Best Ratings”; and “Catastrophe Risk Management Incorporated Within the Rating Analysis.” Methodologies can be found at www.ambest.com/ratings/methodology.

Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com.

SOURCE: A.M. Best Co.

NEW YORK, N.Y., October 8, 2010 – New York Life Insurance Company has dominated the Million Dollar Round Table (MDRT) in the United States for the fifty-sixth consecutive year with 1,995 New York Life agents. MDRT granted memberships to 10,244 agents in the United States making membership in this organization a distinguishing life insurance career milestone, attained by less than 1 percent of the world’s financial services professionals who have demonstrated superior professional knowledge, experience and client service.

“New York Life is pleased to achieve the insurance industry’s hallmark of excellence for the 56th year in a row. This distinction can be attributed to the drive and professionalism of our agents as well as the company’s comprehensive agent training and development,” said Mark Pfaff, executive vice president in charge of U.S. Life Insurance and Agency. “Our MDRT leadership reflects New York Life’s belief that there is no substitute for a trusted, knowledgeable leader committed to serving their clients with exemplary performance and the highest standards of ethics, service and productivity of a highly trained professional. We will continue to provide our agents with the support and resources needed to help them achieve long-term success.”

Of the 1,007 female MDRT members in the United States, 276 are New York Life agents – making the company the leader in female MDRT membership.

In 2010, New York Life International, LLC, the overseas arm of New York Life, ranked among the leading MDRT companies globally with 534 MDRT members from its operations in, Mexico, India, China, Hong Kong, South Korea, Taiwan and Thailand.

Founded in 1927, MDRT is an international, independent association more than 31,000 of the world’s leading life insurance and financial services professionals from 83 nations and territories, representing over 450 companies. MDRT members are recognized as skillful professionals who are considered to be among the best in the industry, perform outstanding client service, and have achieved the highest standard of sales excellence in the life insurance and financial services business.

New York Life Insurance Company, a Fortune 100 company founded in 1845, is the largest mutual life insurance company in the United States* and one of the largest life insurers in the world. New York Life has the highest possible financial strength ratings from all four of the major credit rating agencies. Headquartered in New York City, New York Life’s family of companies offers life insurance, retirement income, investments and long-term care insurance. New York Life Investments** provides institutional asset management and retirement plan services. Other New York Life affiliates provide an array of securities products and services, as well as institutional and retail mutual funds. Please visit New York Life’s Web site at www.newyorklife.com for more information.

*New York Life is the largest mutual life insurance company based on the Fortune 500, ranked within industries, Insurance: Life, Health (Mutual),Fortune magazine, May 3, 2010.

**New York Life Investments is a service mark used by New York Life Investment Management Holdings LLC and its subsidiary, New York Life Investment Management LLC.

Source: New York Life Press Release

Oct 04, 2010 (M2 EQUITYBITES via COMTEX) — Moody’s placed on Monday on review for possible downgrade the A1 insurance financial strength rating (IFSR) of Japanese AIG Edison Life Insurance Co.

The move follows the announcement of the company’s parent, US American International Group (NYSE: AIG | PowerRating) that it would sell AIG Edison and AIG Star Life Insurance to Prudential Financial (NYSE: PRU | PowerRating).

AIG Edison’s current A1 rating reflects the general corporate guarantee agreement between AIG Edison and American Home Assurance Co (AHAC), also a unit of AIG.

In the analysts’ view, the sale may lead to the guarantee’s suspension and if that takes place, obligations in effect or contracted for on the date of termination would remain covered until extinguished.

Nevertheless, a termination of the guarantee would likely result in a rating downgrade for AIG Edison, in light of the prospective nature of ratings.

The agency considers that in the absence of the guarantee, AIG Edison’s standalone credit profile would be more accordant with an A3 level, two notches below its current A1 rating.

On the other hand, after AIG Edison becomes a member of Prudential Financial, its credit profile could be underpinned by its affiliation and integration with other Prudential companies in Japan, Moody’s noted.

Once the sale is completed, Moody’s will look into how effectively the Prudential group companies, including Gibraltar Life Insurance, can collaborate, and reflect the new situation in the AIG Edison rating.

OLDWICK, N.J., Sep 15, 2010 (BUSINESS WIRE) — A.M. Best Co. has assigned a financial strength rating of A (Excellent) and an issuer credit rating of “a” to CIGNA Health and Life Insurance Company (CHLIC) (Bloomfield, CT), a subsidiary of Connecticut General Life Insurance Company (CGLIC), which is an indirect wholly owned subsidiary of CIGNA Corporation (CIGNA) [NYSE: CI]. The outlook assigned to both ratings is negative.

The ratings of CHLIC are based on its strong capital position and the implicit support of CGLIC. Additionally, the favorable rating implications include a transition plan to move selected CGLIC’s mid-sized market segment clients into CHLIC, along with the business growth from actively marketing new business beginning in 2011.

Offsetting these favorable factors is the concentration risk of managing a narrow range of business, as CHLIC will focus primarily on the mid-sized market segment. CHLIC will need to file products and/or rates in each of the states in which it intends to compete, which may pose regulatory risks. Furthermore, there are risks associated in transitioning the existing business from CGLIC to CHLIC.

The negative outlook reflects the rating outlook of CHLIC’s intermediate parent, CGLIC.

The principal methodology used in determining these ratings is Best’s Credit Rating Methodology — Global Life and Non-Life Insurance Edition, which provides a comprehensive explanation of A.M. Best’s rating process and highlights the different rating criteria employed. Additional key criteria utilized include: “Rating Health Insurance Companies”; “Understanding BCAR for Life/Health Insurers”; “Rating New Company Formations”; “Assessing Country Risk”; and “Risk Management and the Rating Process for Insurance Companies.” Methodologies can be found atwww.ambest.com/ratings/methodology.

Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com.