A.M. Best Affirms Ratings of Delphi Financial Group, Inc. and Its Subsidiaries.

OLDWICK, N.J. -- A.M. Best Co. has affirmed the financial strength rating (FSR) of A (Excellent) and the issuer credit ratings (ICR) of "a" of Delphi Financial Group, Inc.'s (Delphi Financial) (Wilmington, DE) [NYSE:DFG] primary life insurance subsidiaries, Reliance Standard Life Insurance Company (Reliance Standard) (Chicago, IL) and First Reliance Standard Life Insurance Company (New York, New York). A.M. Best has also affirmed the ICR of "bbb" of Delphi Financial. Additionally, A.M. Best has affirmed all debt ratings for Delphi Financial, Delphi Funding L.L.C. and Reliance Standard Life Global Funding. The outlook for all ratings is stable. (See below for a detailed listing of the ratings.)

The rating affirmations reflect the continued favorable operating results reported by Delphi Financial's primary life insurance subsidiaries, as well as the organization's established niche in the small to mid-sized employee benefit market, focusing on group disability income and group life coverages. Primarily through its flagship life insurance subsidiary, Reliance Standard, Delphi Financial has been able to continue to grow its book of business in a disciplined manner. The life operations are also somewhat diversified by their individual annuity product offerings. Delphi Financial continues to maintain a debt-to-capital ratio of under 20% and an ample interest coverage ratio over 11 times.

A.M. Best believes Reliance Standard will continue to face competitive pressures in its core group disability and group life products lines in the coming years. The company has been able to enhance its premium growth recently through its turn key disability income operations as well as through its ability to offer voluntary products and traditional group benefit products. Like all disability income writers, Reliance Standard faces challenges of operating in an extended low interest rate environment.

The FSR of A (Excellent) and the ICRs of "a" have been affirmed for the following subsidiaries of Delphi Financial Group, Inc.:

* Reliance Standard Life Insurance Company

* First Reliance Standard Life Insurance Company

The ICR of "bbb" has been affirmed for Delphi Financial Group, Inc.

The following debt ratings have been affirmed:

Delphi Financial Group, Inc.--

-- "bbb" on $143.8 million 8% senior unsecured notes, due 2033

Delphi Funding L.L.C.--

-- "bbb-" on $100 million 9.31% capital securities, due 2027

Reliance Standard Life Global Funding.--

-- "a" on $100 million medium term notes (MTNs)

The following indicative ratings have been affirmed for debt securities available under the shelf registration:

Delphi Financial Group, Inc.--

-- "bbb" on senior unsecured debt 

-- "bbb-" on subordinated debt 

-- "bbb-" on preferred securities

-- "bb+" on preferred stock 

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.