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FOR IMMEDIATE RELEASE
OLDWICK - DECEMBER 13, 2017 04:16 PM (EST)
A.M. Best has placed under review with negative implications the Financial Strength Rating of B+ (Good) and the Long-Term Issuer Credit Ratings of “bbb-” of Mountain Life Insurance Company (Mountain Life) (Alcoa, TN).
The action follows the announcement on Dec. 6, 2017, that Kentucky National Insurance Group, LLC (Kentucky National) (Kentucky) will acquire 100% of the common stock of Mountain Life. The transaction is expected to close on Jan. 2, 2018, and is subject to the required regulatory approvals and other customary closing conditions. Mountain Life will continue to offer credit life and credit disability insurance products in six states throughout Midwest and the South. Kentucky Home Life Insurance Company (Kentucky Home Life), a subsidiary of Kentucky National, will continue its credit offerings in Kentucky and will also market products under the Mountain Life name.
A.M. Best anticipates that Mountain Life’s Credit Ratings will likely be removed from under review following the close of the transaction and the completion of A.M. Best’s discussions with management. While material changes to the financial profile of Mountain Life are not anticipated, the level of capitalization to be maintained and the operating plans for the company are not fully known at this time. In addition, A.M. Best needs to review the financial condition of the acquiring company as Kentucky National and its key insurance subsidiaries do not have an interactive relationship with A.M. Best.
This press release relates to Credit Ratings that have been published on A.M. Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.
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