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

(The following statement was released by the rating agency)

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


The ratings on NGL are based on the company's strong capital adequacy as measured by our model, and good operating performance based on its statutory pretax return on revenues. NGL's acquisition strategy, which exposes the company to potential heightened underwriting and pricing risk, partially offsets its strengths. The company's growth strategy has placed some strain on capital and profitability.

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

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

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

National Guardian Life Insurance Co.

Counterparty Credit Rating Financial Strength Rating Api Upgraded To From Settlers Life Insurance Co. Counterparty Credit Rating Financial Strength Rating Api BBBpi

This unsolicited rating(s) was initiated by Standard & Poor's. It may be based solely on publicly available information and may or may not involve the participation of the issuer. Standard & Poor's has used information from sources believed to be reliable based on standards established in our Credit Ratings 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 on the Global Credit Portal at

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

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