A.M. Best Affirms Ratings of Madison National Life and Standard Security Life; Upgrades Independence American and Assigns Issuer Credit Ratings.

OLDWICK, N.J. -- A.M. Best Co. has affirmed the financial strength rating of A- (Excellent) of Madison National Life Insurance Company, Inc. (Madison National) (Wisconsin) and has assigned an issuer credit rating (ICR) of "a-". The outlook for both ratings is stable.

Additionally, A.M. Best has affirmed the financial strength rating of A (Excellent) of Standard Security Life Insurance Company of New York (Standard Security) (New York), removed the negative outlook and assigned an issuer credit rating of "a". The outlook for both ratings is stable.

A.M. Best has upgraded the financial strength rating to B++ (Very Good) from B+ (Very Good) of Independence American Insurance Company (Independence American) (Delaware) and changed the outlook to stable from positive. Furthermore, A.M. Best has assigned an issuer credit rating of "bbb". The outlook for the ICR is stable.

All three companies are members of the Independence Holding Company (Independence Holding) (NYSE: IHC) (Delaware). Concurrently, A.M. Best has assigned an ICR of "bbb" to Independence Holding. The outlook for this rating is stable.

The rating affirmation of Madison National reflects a strong risk-adjusted capitalization, consistently positive aggregate statutory operating results and an evolving business profile due to a series of block of business acquisitions and an enhanced product portfolio.

The rating also acknowledges the favorable operating results of the company's two insurance affiliates, Standard Security and Independence American. Madison National's core products are group life and disability, medical stop-loss, credit life and disability and acquisitions of closed blocks of business.

The rating affirmation of Standard Security reflects strong risk-adjusted capitalization on a stand-alone basis, a favorable competitive market position in the medical stop-loss segment and consistently positive statutory operating results. Standard Security's core products are medical stop-loss, New York short-term DBL and group life, including a division devoted to the life and annuity needs of volunteer firefighters.

The rating upgrade of Independence American reflects a strong risk-adjusted capitalization on a stand-alone basis, its profitable growing presence in the medical stop-loss business and positive aggregate statutory operating results. The rating also reflects the company's integral role as a reinsurer of employer medical stop-loss and managed care business produced for Madison National and Standard Security by its captive and unaffiliated managing general underwriters (MGUs).

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.