A.M. Best Affirms and Withdraws Ratings of Central Benefits Mutual Insurance Company and Its Subsidiary.

OLDWICK, N.J. -- A.M. Best Co. has affirmed the financial strength rating (FSR) of B+ (Good) and issuer credit ratings (ICR) of "bbb-" of Central Benefits Mutual Insurance Company (Central Benefits Mutual) (Washington, DC) and its subsidiary, Central Benefits National Life Insurance Company (Central Benefits National) (Westerville, OH). The outlook for all ratings is stable.

Subsequently, A.M. Best has withdrawn the ratings and assigned a category NR-4 (Company Request) to both companies in response to management's request that they be removed from A.M. Best's interactive rating process.

The ratings reflect the group's adequate level of risk-adjusted capital and reduced risk exposure. However, A.M. Best notes that Central Benefits Mutual has reported declining operating results and surplus in each of the past four years. The company recently completed its exit from the stop loss and group life insurance market. In addition, the group has sold off its third party administration (TPA) business, CenBen USA Inc., leaving it with its Medicare supplement block, which is currently in run-off. The TPA business had been experiencing net operating losses in recent years. Overall, operating results have fluctuated over the past five years due primarily to a number of one-time events.

While Central Benefits Mutual maintains a high degree of exposure to equities, these mainly represent investments in affiliated companies. A.M. Best believes that Central Benefits Mutual has the ability to meet its ongoing obligations to its policyholders as it manages its run-off Medicare supplement block. The ratings of Central Benefits Mutual do not reflect any changes in the capital structure that management may make in the future.

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.