A.M. Best Places Rating of The Lafayette Life Insurance Company Under Review with Positive Implications.

OLDWICK, N.J. -- A.M. Best Co. has placed the financial strength rating of A (Excellent) of The Lafayette Life Insurance Company (Lafayette, IN) under review with positive implications.

This action follows today's announcement that Lafayette Life has formed a strategic alliance with Western & Southern Financial Group, Inc. (Western & Southern). Lafayette Life will join the Western & Southern family of companies through a merger of mutual holding companies. The financial strength ratings of A++ (Superior) of Western & Southern's core life insurance subsidiaries, The Western and Southern Life Insurance Company and Western-Southern Life Assurance Company (all of Cincinnati, OH) and the debt rating of "aa-" of Western & Southern are unaffected.

This transaction is subject to approval by the Departments of Insurance of Indiana and Ohio, and the eligible members of Lafayette Life Mutual Insurance Holding Company and Western & Southern Mutual Holding Company. In addition, Lafayette Life will establish a "closed block," which sets aside certain assets to provide for the payment of benefits and dividends on participating policies owned by eligible individual policyholders. The transaction is expected to be finalized by the end of this year.

A.M. Best believes that the companies have compatible cultures and that the transaction supports the growth initiatives of each by expanding distribution channels and increasing product lines. A.M. Best views the transaction favorably as it gives Lafayette Life's distribution force access to a wider range of financial products and services while providing Western & Southern with expanded distribution capabilities and new products. Furthermore, A.M. Best recognizes that this affiliation will enhance Lafayette Life's financial flexibility and access to capital.

A.M. Best expects that Lafayette Life will continue to operate as a separate corporate entity, maintaining a presence in Lafayette, IN, for at least three to five years following the merger.

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.