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A.M. BEST COMPANY REMOVES NACOLAH, UNIT FROM UNDER REVIEW STATUS

 OLDWICK, N.J.--Effective immediately, A.M. Best Company has affirmed the "A" (Excellent) Best's Ratings of North American Company for Life and Health (NACOLAH) and North American Company for Life and Health of New York, both of Chicago, and removed them from "under review" status.
 This rating affirmation follows the announcement yesterday that an investors group including DLJ Merchant Banking Partners, L.P., International Insurance Investors, L.P., Life Re Corporation, certain existing shareholders and members of the company's current management team had completed a previously announced acquisition of the companies' parent, NACOLAH Holding Corporation, for $115 million.
 As a result of this transaction, parent company debt will be reduced, resulting in materially improved debt-coverage ratios and decreased dividend requirements at the operating company level. In addition, the volume of NACOLAH's outstanding financial reinsurance is being significantly reduced. Best anticipates that all such remaining reinsurance will be eliminated during 1994.
 "A.M. Best views this acquisition favorably in that the quality, level and structure of NACOLAH's capitalization has been strengthened and the organization's financial flexibility enhanced," said Larry G. Mayewski, senior vice president of Best's life/health division.
 According to senior NACOLAH management, the group's strategic product portfolio, client base and distribution system will remain unchanged under new ownership.
 -0- 12/29/93
 /CONTACT: Larry G. Mayewski of A.M. Best, 908-439-2200, ext. 5643/


CO: North American Company for Life and Health; North American Company
 for Life and Health of New York; NACOLAH Holding Corporation ST: Illinois IN: INS SU: RTG


LG -- NY028 -- 7817 12/29/93 13:56 EST
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Publication:PR Newswire
Date:Dec 29, 1993
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