A.M. Best Adjusts Ratings of Torchmark Corporation.

OLDWICK, N.J. -- A.M. Best Co. has adjusted the issuer credit rating (ICR) to "a-"from "a" for Torchmark Corporation (Torchmark) (McKinney, TX) [NYSE: TMK]. Concurrently, A.M Best has adjusted all of the group's existing debt and shelf ratings down one notch. A.M. Best has also affirmed Torchmark's rating on its commercial paper.

The adjusting of the holding company's ICR, debt and shelf ratings does not reflect any changes in the creditworthiness or the financial fundamentals of the organization. These rating actions better reflect A.M. Best's typical notching by widening the spread between the operating company and the holding company ICR from two to three notches. The financial strength ratings and ICRs of the life/health subsidiaries are unchanged.

Torchmark remains a superior capitalized company with an established position in several niche markets including ordinary life, Medicare supplement and direct response marketing. The company has also demonstrated consistent profitability that is a result of Torchmark's well-managed niche market strategy, executed by an effective management team.

Torchmark is a publicly-traded insurance holding company, which operates through eight wholly owned subsidiaries, providing life and supplemental health insurance to middle-income families throughout the United States. The group markets its products using multiple distribution channels, which include direct response, exclusive agency and independent agency systems. The group's key operating subsidiaries include Liberty National Life, the largest domestic life insurer in Alabama; Globe Life and Accident Insurance Company (Delaware), a leader in direct response marketing; United American Insurance Company (Delaware), which primarily writes supplement health insurance coverage; and American Income Life Insurance Company (Indiana), which markets life and supplemental health insurance products primarily in the union market.

The following debt ratings have been adjusted down one notch:

Torchmark CorporationCo

-- to "a-" from "a" on $180 million 6.25% senior unsecured notes, due 2006

-- to "a-" from "a" on $100 million 8.25% senior unsecured notes, due 2009

-- to "a-" from "a" on $100 million 7.375% senior unsecured notes, due 2013

-- to "a-" from "a" on $200 million 7.875% senior unsecured notes, due 2023

-- to "a-" from "a"on $250 million 6.375% senior unsecured notes, due 2016

Torchmark Capital Trust IIICo

-- to "bbb+" from "a-" on $120 million 7.10% trust preferred securities, backed by junior subordinated debentures, due 2046.

The following indicative debt ratings available under the shelf registration have been adjusted down one notch:

Torchmark CorporationCo

-- to "a-" from "a" on senior unsecured debt 

-- to "bbb+" from "a-" on subordinated debt 

-- to "bbb" from "bbb+" on preferred stock 

Torchmark Capital Trust IVCo

-- to "bbb+" from "a-" on preferred securities

The following debt rating has been affirmed:

Torchmark CorporationCo

-- AMB-1 on commercial paper

For Best's Debt Ratings, all other Best's Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings.

A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. For more information, visit A.M. Best's Web site at www.ambest.com.