A.M. Best Places Ratings of Investors Life Insurance Company of North America and Financial Industries Corporation Under Review
OLDWICK, N.J.--(Business Wire)--A.M. Best Co. has placed the financial strength rating (FSR) of B
(Fair) and the issuer credit rating (ICR) of "bb" of Investors Life
Insurance Company of North America (ILNA) under review with positive
implications. Concurrently, A.M. Best has placed the ICR of "b-" of
ILNA's parent, Financial Industries Corporation (FIC) (Other OTC:
FNIN.PK) under review with positive implications. Both companies are
domiciled in Austin, TX. These rating actions follow the announcement
on January 15, 2008 that FIC has reached an agreement in principle to
be acquired by Americo Life, Inc. (Americo) (Kansas City, MO).
FIC's announced agreement and plan of merger will allow Americo to
acquire FIC and ILNA in a cash transaction valued at $74.7 million.
FIC, through ILNA, markets and underwrites individual life insurance
products, primarily in the final expense and mortgage protection term
life markets. A.M. Best believes the acquisition provides the
companies access to greater levels of financial flexibility through a
larger and stronger parent organization.
The transaction is subject to customary closing conditions,
including FIC shareholder and regulatory approvals, and is expected to
close in second quarter 2008.
The ICR of Americo and the FSRs and ICRs of Americo's subsidiaries
are unchanged by this proposed transaction.
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 Co.
Analysts
Steven Faulks, 908-439-2200, ext. 5035
steven.faulks@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 2008
