Life Insurance

A.M. Best Upgrades Credit Ratings of Liberty Bankers Life Insurance Company and Its Subsidiaries

OLDWICK, N.J.–()–A.M. Best has upgraded the Financial Strength Ratings to B++
(Good) from B+ (Good) and the Long-Term Issuer Credit Ratings to “bbb”
from “bbb-” of Liberty Bankers Life Insurance Company (Oklahoma
City, OK), and its wholly owned life insurance subsidiaries, The Capitol
Life Insurance Company
(Dallas, TX) and American Benefit Life
Insurance Company
(Oklahoma City, OK), together known as the Liberty
Bankers Group
. The outlook of these Credit Ratings (ratings) remains

The rating upgrades reflect Liberty Bankers Group’s trend of increasing
absolute capital with a five-year compound annual growth rate of 9.0%
and improvement in balance sheet strength, which A.M. Best views as
strong. Liberty Bankers Group’s improved risk-adjusted capital reflects
profitable operations, successful entrances into new markets, as well as
a few acquisitions in recent years. Recent new markets include Medicare
Supplement and single premium whole life as an estate planning tool. In
terms of acquisitions, the company acquired a Lincoln Memorial Life
Insurance Company block of business in 2017, which is expected to lower
its concentration in the annuity business.

A.M. Best remains concerned with Liberty Bankers Group’s relatively high
level of commercial mortgage loans, in absolute terms and in relation to
capital and surplus, as well as the elevated leverage at the holding
company level, but notes the group’s expertise with mortgage loans.
Moreover, the Liberty Bankers Group has higher-than-average exposure to
NAIC Class 2 investment grade bonds.

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
Rating Activity
web page. For additional information
regarding the use and limitations of Credit Rating opinions, please view
Best’s Credit Ratings
. For information on the proper media
use of Best’s Credit Ratings and A.M. Best press releases, please view
for Media – Proper Use of Best’s Credit Ratings and A.M. Best Rating
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