A.M. Best Affirms Rating of Western Life Assurance Company; Removes From Under Review and Assigns Stable Outlook.

OLDWICK, N.J. -- A.M. Best Co. has affirmed the financial strength rating of B++ (Very Good) of Western Life Assurance Company (Western Life) (Winnipeg, Manitoba). The rating has been removed from under review with developing implications and assigned a stable outlook.

This rating action follows the recent acquisition of Federated Life Insurance Company of Canada by Western Financial Group (WFG) and its subsequent name change to Western Life Assurance Company. Western Life was acquired from Federated Holdings of Canada Ltd., a wholly owned subsidiary of Northbridge Financial Corporation. The stable outlook was assigned to the rating after a review of the financial statements of Western Life subsequent to the closing and a review of the year-end financial statements of WFG. In addition, WFG has shared with A.M. Best its plans regarding capital management to support ongoing operations.

WFG acquired Western Life for a $20 million purchase price of the common shares and $36.9 million in assumed assets and liabilities. WFG used the proceeds raised from its previously completed public offering of subscription receipts to fund the acquisition, and in connection with the completion of the acquisition, WFG issued 10,350,000 of common shares upon conversion of the issued and outstanding subscription receipts.

A.M. Best will continue to monitor the operating results of Western Life as it implements its business plan to provide life and health insurance products to groups and individuals in Canada.

For Best's Ratings, an overview of the rating process and rating methodologies, please visit http://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 http://www.ambest.com.