TEXT-S&P affirms National Guardian Life Insurance 'Api' rating


(The following statement was released by the rating agency)

Oct 11 - Rating ActionOn Sept. 21, 2012, Standard & Poor's Ratings Services affirmed its 'Api'counterparty credit and financial strength ratings on National Guardian LifeInsurance Co. (NGL) and upgraded its counterparty credit and financialstrength ratings on Settlers Life Insurance Co. to 'Api' from 'BBBpi'.


The ratings on NGL are based on the company's strong capital adequacy asmeasured by our model, and good operating performance based on its statutorypretax return on revenues. NGL's acquisition strategy, which exposes thecompany to potential heightened underwriting and pricing risk, partiallyoffsets its strengths. The company's growth strategy has placed some strain oncapital and profitability.

The upgrade of Settlers Life reflects the company's good operating performancethrough year-end 2011. The rating also reflects its strong capital adequacy.The company's limited business profile and geographic concentration somewhatoffset its strengths. In terms of its business profile, 83% of net premiumsare written in the ordinary life segment, while the remaining is derived fromthe group life segment.

Based in Madison, Wis., NGL and Settlers are both insurance subsidiaries ofthe National Guardian Life Insurance Group. The companies share a commonstrategy and performance, and we look at them on a consolidated basis. NGLoffers primarily traditional group and individual life insurance, with someannuity and accident and health products. Settlers offers individual ordinary,term, and universal life, and group universal and pre-need life. Bothcompanies began operations in 1910 and are licensed in 49 states and theDistrict of Columbia.

Related Criteria And ResearchRatings Bearing A "pi" Subscript: Methodology And Assumptions, Feb. 9, 2011Ratings ListRatings Affirmed

National Guardian Life Insurance Co.

Counterparty Credit RatingFinancial Strength Rating ApiUpgraded To FromSettlers Life Insurance Co.Counterparty Credit RatingFinancial Strength Rating Api BBBpi

This unsolicited rating(s) was initiated by Standard & Poor's. It may be basedsolely on publicly available information and may or may not involve theparticipation of the issuer. Standard & Poor's has used information fromsources believed to be reliable based on standards established in our CreditRatings Information and Data Policy but does not guarantee the accuracy,adequacy, or completeness of any information used.

Complete ratings information is available to subscribers of RatingsDirect onthe Global Credit Portal at

. All ratings affectedby this rating action can be found on Standard & Poor's public Web site at. Use the Ratings search box located in the leftcolumn.(New York Ratings Team)

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