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OLDWICK, N.J., June XX, 2004—A.M. Best Co. has placed the financial strength
rating of A (Excellent) of The Lafayette Life Insurance Company (Lafayette,
IN) under review with positive implications.
This action follows today's announcement that Lafayette Life has formed a strategic
alliance with Western & Southern Financial Group, Inc. (Western &
Southern). Lafayette Life will join the Western & Southern family of companies
through a merger of mutual holding companies. The financial strength ratings of
A++ (Superior) of Western & Southern's core life insurance subsidiaries, The
Western and Southern Life Insurance Company and Western-Southern Life Assurance
Company (all of Cincinnati, OH) and the debt rating of "aa-"
of Western & Southern is unaffected.
This transaction is subject to approval by the Departments of Insurance of Indiana
and Ohio, and the eligible members of Lafayette Life Mutual Insurance Holding Company
and Western & Southern Mutual Holding Company. In addition, Lafayette
Life will establish a "closed block," which sets aside certain assets
to provide for the payment of benefits and dividends on participating policies owned
by eligible individual policyholders. The transaction is expected to be finalized
by the end of this year.
A.M. Best believes that the companies have compatible cultures and that the transaction
supports the growth initiatives of each by expanding distribution channels and increasing
product lines. A.M. Best views the transaction favorably as it gives Lafayette Life's
distribution force access to a wider range of financial products and services while
providing Western & Southern with expanded distribution capabilities and new
products. Furthermore, A.M. Best recognizes that this affiliation will enhance Lafayette
Life's financial flexibility and access to capital.
A.M. Best expects that Lafayette Life will continue to operate as a separate corporate
entity, maintaining a presence in Lafayette, IN, for at least three to five years
following the merger.
A.M. Best Co., established in 1899, is the world's oldest and most authoritative
insurance rating and information source. For more information, visit A.M. Best’s
Web site at www.ambest.com.
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