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A.M. Best Affirms Credit Ratings of Sammons Financial Group, Inc. and Its Subsidiaries

August 2, 2018

OLDWICK, N.J.--(BUSINESS WIRE)--Aug 2, 2018--A.M. Best has affirmed the Financial Strength Rating of A+ (Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “aa-” of Midland National Life Insurance Company (Midland National) and North American Company for Life and Health Insurance (North American) (both domiciled in West Des Moines, IA). In addition, A.M. Best has affirmed the Long-Term ICR of “a-” and the Long-Term Issue Credit Rating (Long-Term IR) of “a-” on the $200 million 7.0% senior unsecured notes, due 2043 and the $500 million 4.45% senior unsecured notes, due 2027, of Sammons Financial Group, Inc. (SFG, Inc.) (Delaware). The outlook of these Credit Ratings (ratings) is stable. SFG, Inc. is an intermediate holding company for Midland National and North American, and is indirectly owned by Sammons Enterprises, Inc. Midland National and North American – the group’s key life/health insurance subsidiaries – are jointly referred to as the Sammons Financial Group (SFG).

The ratings reflect SFG’s balance sheet strength, which A.M. Best categorizes as very strong, as well as its strong operating performance, favorable business profile and appropriate enterprise risk management. The ratings also factor in SFG’s solid risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), to support its insurance and business risks. The group’s trend of positive earnings and well-managed investment portfolio benefits from the resources and expertise of its investment manager, Guggenheim Partners Investment Management, which focuses on prudent credit underwriting expertise as a means to diversify the company’s asset portfolio for yield. As a result, the group has a high allocation to structured assets such as asset-backed securities, collateralized loan obligations, mortgage loans and private placements, which historically have performed well but are subject to potential higher impairments under stressed economic scenarios. SFG, Inc.’s financial and operating leverage is considered well-within an acceptable range at the current ratings level.

SFG holds prominent market positions in the individual life and fixed indexed annuity marketplaces, with plans to grow its business in Sammons Retirement Solutions marketing products such as mutual fund IRAs and variable annuities through wholesale distribution through independent broker/dealers.

This press release relates to Credit Ratings that have been published on A.M. Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see A.M. Best’s web page. For additional information regarding the use and limitations of Credit Rating opinions, please view . For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view .

A.M. Best is a global rating agency and information provider with a unique focus on the insurance industry. Visit for more information.

Copyright © 2018 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

View source version on businesswire.com:https://www.businesswire.com/news/home/20180802005644/en/

CONTACT: A.M. Best

Anthony McSwieney, +1 908-439-2200, ext. 5715

Senior Financial Analyst

anthony.mcswieney@ambest.com

or

William Pargeans, +1 908-439-2200, ext. 5359

Director

william.pargeans@ambest.com

or

Christopher Sharkey, +1 908-439-2200, ext. 5159

Manager, Public Relations

christopher.sharkey@ambest.com

or

Jim Peavy, +1 908-439-2200, ext. 5644

Director, Public Relations

james.peavy@ambest.com

KEYWORD: UNITED STATES EUROPE NORTH AMERICA NEW JERSEY

INDUSTRY KEYWORD: PROFESSIONAL SERVICES BANKING FINANCE INSURANCE

SOURCE: A.M. Best

Copyright Business Wire 2018.

PUB: 08/02/2018 12:04 PM/DISC: 08/02/2018 12:04 PM

http://www.businesswire.com/news/home/20180802005644/en

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