A.M. Best Affirms Ratings of American Enterprise Mutual Holding Company Subsidiaries and Homesteaders Life Company

OLDWICK, N.J.--(Business Wire)--
A.M. Best Co. has affirmed the financial strength rating (FSR) of A- (Excellent)
and issuer credit ratings (ICR) of "a-" of American Republic Insurance Company
(American Republic)(Des Moines, IA) and World Insurance Company (World) (Omaha,
NE), subsidiaries of American Enterprise Mutual Holding Company(American
Enterprise)(Des Moines, IA). The outlook for these ratings is stable.

Additionally, A.M. Best has affirmed the FSR of B++ (Good) and ICR of "bbb+" of
Homesteaders Life Company (Homesteaders) (Des Moines, IA). The outlook for these
ratings is positive.

These affirmationsfollow the recent announcement of Homesteaders` letter of
intent to join American Enterprise subject to the conclusion of a satisfactory
due diligence process and regulatory approvals. Following the successful
completion of the merger, Homesteaders would operate as a distinct company under
its current management.

A.M. Best also has affirmed the FSR of B++ (Good) and ICR of "bbb" of World Corp
Insurance Company (World Corp)(Omaha, NE), a subsidiary of World. The outlook
for these ratings is stable.

American Enterprise, a mutual holding company with annual net premiums written
totaling over $650 million, primarily markets individual major medical and
Medicare supplement products chiefly in the Midwest. Homesteaders, a mutual
company with annual net premiums written totaling over $325 million, is one of
the leading providers of pre-need life insurance.

A.M. Best believes the merger will provide business diversification to American
Enterprise, as the company has witnessed increased competition in its core
accident and health lines of business in recent years. Homesteaders will benefit
from gaining access to capital, which should materially improve its risk-based
capital position and serve to alleviate some of the investment exposure the
company holds in commercial mortgages.

For Best`s Ratings, an overview of the rating process and rating methodologies,
please visit www.ambest.com/ratings.

Founded in 1899, A.M. Best Company is a global full-service credit rating
organization dedicated to serving the financial and health care service
industries, including insurance companies, banks, hospitals and health care
system providers. For more information, visit www.ambest.com.

A.M. Best Company
Analysts
Brian Virostek, 908-439-2200, ext. 5531
brian.virostek@ambest.com
or
Andrew Gold, 908-439-2200, ext. 5487
andrew.gold@ambest.com
or
Public Relations
Jim Peavy, 908-439-2200, ext. 5644
james.peavy@ambest.com
or
Rachelle Morrow, 908-439-2200, ext. 5378
rachelle.morrow@ambest.com

Copyright Business Wire 2009