A.M. Best Assigns Indicative Debt Ratings to Torchmark Corporation`s Shelf Registration

OLDWICK, N.J.--(Business Wire)--
A.M. Best Co. has assigned indicative debt ratings of "a-" to senior unsecured
debt, "bbb+" to subordinated debt, "bbb" to trust preferred securities and "bbb"
to preferred stock, which may be issued under Torchmark Corporation`s
(Torchmark) (headquartered in McKinney, TX) (NYSE: TMK) recently filed shelf
registration statement. Concurrently, A.M. Best has assigned a debt rating of
"a-" to the newly issued $300 million 9.25% senior unsecured notes due 2019 of
Torchmark. The outlook assigned to all ratings is negative. Torchmark`s
financial strength, issuer credit and existing debt ratings are unchanged.

Proceeds from the senior notes will be used to fund $100 million in notes
maturing in August 2009 and for general corporate purposes. Torchmark`s
financial leverage and interest coverage ratios are expected to remain
consistent with its current ratings. A.M. Best believes the debt issuance
improves the company`s overall liquidity and financial flexibility. In addition,
it will help to mitigate some of the concerns regarding the heightened risks
within Torchmark`s investment portfolio due to the significant unrealized loss
position within its fixed income portfolio and the substantial increase in below
investment grade bonds over the most recent period.

The ratings reflect Torchmark`s exceptional operating profitability due to
strong earnings generated by its stable and highly profitable blocks of
individual life and health products. In addition, the company has experienced a
relatively modest amount of realized capital losses within its investment
portfolio to date. Although Torchmark has experienced a significant decline in
sales of its health insurance products, it has made a strategic decision to
emphasize its core life product lines, and sales have increased noticeably in
recent periods.

While Torchmark generally maintains a favorable risk-adjusted capital position
in each of its insurance operating entities, A.M. Best believes that the
company`s risk-adjusted capital position may be strained if it were to
experience significant asset impairments or further negative ratings migration
within its fixed income portfolio during 2009. Going forward, A.M. Best will
continue to monitor the company`s ability to increase top-line growth, while
maintaining an adequate risk-adjusted capital position as it manages through the
current economic recession.

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

The principal methodologies used in determining these ratings, including any
additional methodologies and factors that may have been considered, can be found
at www.ambest.com/ratings/methodology.

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 Co.
Analysts:
Michael Adams, 908-439-2200, ext. 5133
michael.adams@ambest.com
or
Thomas Rosendale, 908-439-2200, ext. 5201
thomas.rosendale@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