A.M. Best Upgrades Rating of Lafayette Life Insurance Company Upon Merger with Western & Southern Financial Group.OLDWICK, N.J. -- A.M. Best Co. has upgraded the financial strength rating to A+ (Superior) from A (Excellent) of The Lafayette Life Insurance Company (Lafayette Life) (Lafayette, IN) upon its affiliation with the Western & Southern Financial Group, Inc. (WSFG WSFG Wall Street Financial Group ) (Cincinnati, OH). The rating outlook is stable. Effective June 15, 2005, Lafayette Life MIHC MIHC Murad Inclusive Health Center (El Segundo, California) , Inc., merged with Western & Southern Mutual Holding Company. As a result of the merger, Lafayette Life has become an affiliate of WSFG. WSFG members include Western and Southern Life Insurance Company (WSLIC WSLIC Western and Southern Life Insurance Company ), Western-Southern Life Assurance Company, Columbus Life Insurance Company, Integrity Life Insurance Company and National Integrity Life Insurance Company (New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of ). WSLIC provides a guarantee of payment of all policyholder obligations of Lafayette Life. A.M. Best notes Lafayette Life has a compatible culture and provides product diversification that will contribute to and complement the success of the WSFG enterprise through expanded distribution and products. The rating reflects Lafayette Life's diverse business profile, overall consistently profitable statutory and GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). operating performance, adequate risk-adjusted capitalization, reduced exposure to below investment grade bonds and well-defined asset liability management and hedging strategies. A.M. Best views this transaction favorably as it gives Lafayette Life's distribution force access to a wider range of financial products and services as well as the guaranty As a verb, to agree to be responsible for the payment of another's debt or the performance of another's duty, liability, or obligation if that person does not perform as he or she is legally obligated to do; to assume the responsibility of a guarantor; to warrant. of its A++ (Superior)-rated affiliate. Furthermore, A.M. Best recognizes that this affiliation greatly enhances 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. For Best's Ratings Best's rating A rating A.M. Best Co. assigns to insurance companies based on the company's ability to meet its obligations to its policyholders. , an overview of the rating process and rating methodologies, please visit http://www.ambest.com/ratings. For current Best's Ratings, independent data and analysis on more than 1,100 individual life/health companies and A.M. Best groups, please visit http://www.ambest.com/lh. 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. |
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