A.M. Best Affirms Ratings of Americo Life, Inc. and Its Subsidiaries

OLDWICK, N.J.--(Business Wire)--
A.M. Best Co. has affirmed the financial strength rating (FSR) of A- (Excellent)
and issuer credit rating (ICR) of "a-" of Americo Financial Life and
AnnuityInsurance Company (AFL) (Dallas, TX). Additionally, A.M. Best has
affirmed the ICR of "bbb-" and debt rating of "bbb-" on $125 million 7.875%
senior unsecured notes of Americo Life, Inc. (Americo) (Kansas City, MO).
Concurrently, A.M. Best has downgraded the FSR to B+ (Good) from A-(Excellent)
and ICR to "bbb-" from "a-" of Great Southern Life Insurance Company (Great
Southern) (Dallas, TX). The outlook for all ratings is stable. (See below for a
detailed listing of the companies and ratings.)

While Great Southern has historically been a material source of new business for
Americo, the company is no longer a key component of Americo`s marketing
strategy, as Great Southern only has modest amounts of non-core business being
issued in just two states.

The ratings of Americo primarily reflect the adequate risk-adjusted
capitalization of the statutory operating companies despite the dislocation in
the financial markets over the past year, as well as the favorable operating
profitability that is primarily attributable to the strong earnings generated by
its stable and highly profitable closed blocks of ordinary life business.
Additionally, Americo continues to generate adequate spreads on its annuity
business. Furthermore, Americo`s financial leverage and interest coverage ratios
remain well within A.M. Best`s guidelines for its current ratings.

While the company`s statutory capital position benefited from a $25 million
capital contribution from its parent and the conversion of $60 million of
surplus notes to paid-in capital during second quarter 2009, A.M. Best notes
that surplus notes still represent approximately 30% of adjusted capital and
surplus. In addition, Americo maintains a substantial amount of reinsurance
leverage. A.M. Best also believes 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 over the
near term.

Through its branded marketing focus, expanded distribution and product
development initiatives, AFL has historically generated strong life and annuity
sales growth. However, life sales have declined in 2009 due to the company`s
strategic decision to eliminate sales of certain life insurance products. A.M.
Best believes that AFL may be challenged to increase sales going forward due to
the competitive markets in which it operates and the current recessionary
environment.

The FSR of A- (Excellent) and ICR of "a-" have been affirmed for Americo
Financial Life and Annuity Insurance Company.

The FSRs of B+ (Good) and ICRs of "bbb-" have been affirmed for the following
life/health subsidiaries of Americo Life, Inc.:

* National Farmers Union Life Insurance Company
* The Ohio State Life Insurance Company
* Investors Life Insurance Company of North America

The FSR has been downgraded to B+ (Good) from A- (Excellent) and the ICR to
"bbb-" from "a-" for Great Southern Life Insurance Company.

The ICR of "bbb-" has been affirmed for Americo Life, Inc.

The following debt rating has been affirmed:

Americo Life, Inc.-

-- "bbb-" on $125 million 7.875% senior unsecured notes, due May 2013

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