AM Best Revises Outlooks to Positive for American Enterprise Group, Inc.’s Insurance Subsidiaries

April 23, 2019 ALE

OLDWICK, N.J.–(BUSINESS WIRE)–AM Best has revised the outlooks to positive from stable and
affirmed the Financial Strength Rating (FSR) of A- (Excellent) and the
Long-Term Issuer Credit Ratings (Long-Term ICR) of “a-” of the insurance
subsidiaries of American Enterprise Group, Inc. (American Enterprise).
The subsidiaries are American Republic Insurance Company, American
Republic Corp Insurance Company, Medico Corp Life Insurance
Company, Medico Insurance Company, Medico Life and Health
Insurance Company and Great Western Insurance Company (Great Western)
(Ogden, UT). All companies are domiciled in Des Moines, IA, unless
otherwise specified.

The ratings of the insurance subsidiaries of American Enterprise reflect
the group’s balance sheet strength, which AM Best categorizes as very
strong, as well as its adequate operating performance, neutral business
profile and appropriate enterprise risk management (ERM).

The revised outlooks to positive reflect a continued strengthening in
the group’s balance sheet strength, including maintenance of strongest
risk-adjusted capitalization, as measured by Best’s Capital Adequacy
Ratio (BCAR). American Enterprise has been integrating the management of
Great Western’s investment portfolio and balance sheet over the last
year since it acquired the company. With the addition of Great Western’s
life business, there has been an increased focus by the organization on
reserves and asset-liability matching for all lines of business.
Furthermore, American Enterprise’s core health business continues to
produce favorable operating results, which contribute to overall capital
growth through retained earnings. The group’s balance sheet previously
had been impacted by unfavorable balance sheet factors, including
reserve charges and an elevated allocation to higher risk assets at
Great Western prior to the company coming under the management of
American Enterprise. Continued improvement of balance sheet metrics
could result in positive rating action.

This press release relates to Credit Ratings that have been published
on AM 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 AM 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 AM Best press releases, please view Guide
for Media – Proper Use of Best’s Credit Ratings and AM Best Rating
Action Press Releases.

AM Best is a global rating agency and information provider with a
unique focus on the insurance industry. Visit www.ambest.com
for more information.

Contacts

Bridget Maehr
Associate Director
+1 908 439
2200, ext. 5321
bridget.maehr@ambest.com

Christopher
Sharkey
Manager, Public Relations
+1 908 439
2200, ext. 5159
christopher.sharkey@ambest.com

Joseph
Zazzera, MBA
Director
+1 908 439 2200, ext. 5797
joseph.zazzera@ambest.com

Jim
Peavy
Director, Public Relations
+1 908 439
2200, ext. 5644
james.peavy@ambest.com

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