A.M. Best Affirms Ratings of Advanta Insurance Company and Advanta Life Insurance Company.

OLDWICK, N.J. -- A.M. Best Co. has affirmed the financial strength rating (FSR) of B+ (Good) and issuer credit rating (ICR) of "bbb-" of Advanta Insurance Company (AIC) (Phoenix, AZ), a wholly owned subsidiary of Advanta Corp. [NASDAQ/NM: ADVNA and ADVNB]. Concurrently, A.M. Best has affirmed the FSR of B+ (Good) and ICR of "bbb-" of Advanta Life Insurance Company (ALIC) (Phoenix, AZ), a wholly owned subsidiary of AIC. The outlook for all ratings is stable.

The ratings of AIC reflect an adequate level of risk-adjusted capital, favorable operating profitability and the benefits it derives through its relationship with Advanta Corp. These rating factors are offset by the company's significant affiliated investment leverage, limited scope of business and its rather ancillary role within Advanta Corp. The company's business is derived entirely from customers of its affiliate, Advanta Bank Corp., creating a high degree of concentration risk. AIC also faces limited future growth prospects. Nevertheless, A.M. Best expects that the company will continue to experience positive operating results and will maintain an appropriate level of risk-adjusted capitalization relative to its reduced premium volume.

The ratings of ALIC reflects its adequate level of risk-adjusted capitalization and continued operating profitability driven by premium refunds and positive operating results in the company's core credit lines of business. However, A.M. Best notes that premium levels at ALIC have deteriorated in recent years as other product offerings within the organization have replaced its credit insurance products. A.M. Best will continue to monitor the overall premium levels, profitability and capitalization of the company going forward.

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

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.