A.M. Best Revises Outlook to Stable for Securian Financial Group, Inc.`s Key Life Companies

OLDWICK, N.J.--(Business Wire)--
A.M. Best Co. has revised the outlook to stable from negative and affirmed the
financial strength rating (FSR) of A+ (Superior) and issuer credit ratings (ICR)
of "aa-" of Minnesota Life Insurance Company (Minnesota Life) and its
subsidiary, Securian Life Insurance Company (Securian Life) (both domiciled in
St. Paul, MN). In addition, A.M. Best has revised the outlook to stable from
negative and affirmed the debt rating of "a" on $125 million 8.25% existing
surplus notes due September 2025 of Minnesota Life. All the above companies are
subsidiaries of Securian Financial Group, Inc. (Securian).

The ratings reflect A.M. Best`s belief that Securian`s life companies remain
well capitalized following the events of the financial crisis. In 2009,
Minnesota Life recorded improvement in its reported and risk-adjusted
capitalization, a lower level of impairments and improved overall earnings
levels as compared to 2008. In addition, the company`s financial leverage
remains well within the range for its ratings, and there are no debt maturities
in the near term.

The ratings continue to recognize the group`s diversified sources of earnings,
conservative investment management philosophy, sound liquidity position and
diverse product portfolio. Moreover, Securian has taken steps to reduce its cost
structure and focus on increasing distribution and scale.

The revised outlook reflects A.M. Best`s assessment that while further
deterioration within Securian`s investment portfolio may occur, the level of
additional impairments is viewed as manageable relative to its present
risk-adjusted capital position. A.M. Best notes that the group`s exposure to
certain product and asset risks and level of financial leverage and intangibles
to equity are viewed as lower than its peers.

Nevertheless, Securian maintains exposure to equity market volatility through
its asset management and separate account business lines, as well as in its
corporate pension program through increased pension contributions. To reduce its
equity market exposure, Securian sold approximately 50% of its common stock
during fourth quarter 2009. While performing to date, the group also has
exposure to commercial real estate through direct mortgage loans, alternative
assets and commercial mortgage-backed securities. A.M. Best notes that the
recent growth in statutory capital was due primarily to non-recurring items,
such as higher admission of deferred tax assets and changes in reserving and
accounting rather than organic earnings. A.M. Best expects that earnings levels
will remain below historical norms for the near term given continued uncertainty
in economic conditions.

Concurrently, A.M. Best has downgraded the FSR to A- (Excellent) from A
(Excellent) and ICR to "a-" from "a" of Cherokee National Life Insurance Company
(Cherokee National) (Macon, GA). The outlook has been revised to stable from
negative.

The downgrading of Cherokee National`s ratings recognizes its declining direct
and net premium levels in each of the last five years. Credit life product sales
have continued to fall as Securian has had more success in marketing its
property/casualty credit products. However, the ratings of Cherokee National
continue to recognize the favorable level of risk-adjusted capitalization,
consistent operating earnings and support it receives from Securian.

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
Kenneth Monahan, 908-439-2200, ext. 5342
kenneth.monahan@ambest.com
or
Richard McMillan, 908-439-2200, ext. 5615
richard.mcmillan@ambest.com
or
Public Relations
Rachelle Morrow, 908-439-2200, ext. 5378
rachelle.morrow@ambest.com
or
Jim Peavy, 908-439-2200, ext. 5644
james.peavy@ambest.com

Copyright Business Wire 2010