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A.M. Best Affirms Credit Ratings of NLV Financial Corporation and Its Affiliates

OLDWICK, N.J.—(BUSINESS WIRE)—A.M. Best has endorsed a Financial Strength Rating of A
(Excellent) and a Long-Term Issuer Credit Ratings (Long-Term ICR) of
“a+” of National Life Insurance Company (NLIC) (Montpelier, VT)
and a unconditionally owned subsidiary, Life Insurance Company of the
Southwest
(Dallas, TX) (together famous as National Life). Both
companies are life word subsidiaries of NLV Financial Corporation
(NLVF) (Montpelier, VT), that is a middle holding association in
a organization’s mutual holding association structure. NLVF and its
subsidiaries are collectively famous as a National Life Group.

A.M. Best also has endorsed a Long-Term ICR and a Long-Term Issue
Credit Rating (Long-Term IR) of “bbb+” of NLVF. Additionally, A.M. Best
has endorsed a Long-Term IR of “a-” on $200 million 10.50% surplus
notes, due 2039 of NLIC. The opinion of these Credit Ratings (ratings)
is stable. (See next for a minute inventory of a Long-Term IRs.)

The National Life Group’s ratings simulate a prolonged story of solid
execution in targeting life and payments product solutions to a middle
marketplace segment, that it markets by a multiple of career agents
and a flourishing eccentric organisation force. The organisation targets distributors
in that members can collaborate, creation for stronger partnerships and
continued success. The organisation has shown clever sales expansion in recent
years, outperforming a extended word marketplace total with
operational profitability. The essential expansion has led to an increased
marketplace position with augmenting marketplace share in a niche products, such
as a K-12 educators market. The ratings also simulate new efforts
and a longer-term devise to quit a invested item portfolio to a
some-more auspicious risk/reward position.

Despite a group’s ongoing efforts to change to a some-more offset book of
business, that is reduction seductiveness supportive dependent, a organisation remains
clever in equity indexed-linked products in a life and annuity
segments. Additionally, sales turn augmenting reliant on guaranteed
income benefits, that supplement additional longer risks to a liability
profile. In further to a fundamental risks of these products, these
products also have come underneath additional regulatory scrutiny, and the
group’s bound indexed payments products might be impacted by a U.S.
Department of Labor’s fiduciary rule. Lastly, while a organisation has a
lane record of augmenting risk-adjusted capitalization, a increased
use of captives and over-abundance notes, reduces a altogether peculiarity of
capital. In particular, a over-abundance records lift a poignant interest
rate and have impacted a group’s cost of collateral and pressured
profitability.

The ratings could be impacted definitely if a National Life Group is
means to say clever essential orthodox earnings, increasing
capital, and a diversified product brew including reduction seductiveness sensitive
products. The ratings could be impacted negatively if there is sustained
element decrease in handling opening and risk-based capital.
The ratings also could be impacted negatively if there is a material
boost in riskier resources classes. The following Long-Term IRs have
been affirmed:

NLV Financial Corporation—
— “bbb+” on $75 million 6.50%
comparison unsecured notes, due 2035
— “bbb+” on $200 million 7.50%
comparison unsecured notes, due 2033

National Life Insurance Company—
“a-” on $200
million 10.50% over-abundance notes, due 2039

This press recover relates to Credit Ratings that have been published
on A.M. Best’s website. For all rating information relating to the
recover and impending disclosures, including sum of a office
obliged for arising any of a particular ratings referenced in
this release, greatfully see A.M. Best’s
Recent
Rating Activity
web page. For additional information
per a use and stipulations of Credit Rating opinions, greatfully perspective
Understanding
Best’s Credit Ratings
.

A.M. Best is a world’s oldest and many lawful insurance
rating and information source. For some-more information, revisit
www.ambest.com.

Copyright © 2017 by A.M. Best Rating Services, Inc. and/or its
subsidiaries. ALL RIGHTS RESERVED.

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