A.M. Best Assigns Rating to Torchmark Corporation's New TOPrS Offering.

OLDWICK, N.J. -- A.M. Best Co. has assigned a debt rating of "a-" to the $120 million Trust Originated Preferred Securities (TOPrS) backed by subordinated debentures, due 2046. This debt is issued through a special purpose financing vehicle, Torchmark Capital Trust III, and guaranteed on a subordinated basis by Torchmark Corporation (Torchmark) (McKinney, TX) (NYSE:TMK). The issuance will be made under Torchmark's shelf registration previously filed with the Securities & Exchange Commission on April 28, 2006.

The proceeds from the issuance will be used for general corporate purposes, including the possible re-funding of callable and maturing securities. Torchmark's financial leverage--total debt-plus-preferred securities--including the new TOPrS is approximately 23%, including partial equity credit for the preferred securities. A.M. Best believes Torchmark's future earnings will provide strong debt service coverage and enable capitalization to continue to improve.

The rating reflects the company's superior capitalization, its established position in several niche markets including ordinary life, Medicare supplement and direct response marketing. The rating also considers Torchmark's diverse earnings sources and strong operating performance in its core business lines. This consistent profitability is a result of Torchmark's well-managed niche market strategy, executed by an effective management team.

Torchmark is a publicly-traded insurance holding company, which operates through eight wholly-owned subsidiaries providing life and supplemental health insurance to middle-income families throughout the United States. The group markets its products using multiple distribution channels, which include direct response, exclusive agency and independent agency systems. The group's key operating subsidiaries include Liberty National Life, the largest domestic life insurer in Alabama; Globe Life and Accident Insurance Company (Delaware), a leader in direct response marketing; United American Insurance Company (Delaware), which primarily writes Medicare supplement and other supplemental health insurance coverage; and American Income Life Insurance Company (Indiana), which markets life and supplemental health insurance products primarily in the union market.

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