A.M. Best Affirms Ratings of American Enterprise Mutual Holding Company Subsidiaries and Homesteaders Life Company

OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best Co. has affirmed the financial strength rating (FSR) of A- (Excellent) and issuer credit ratings (ICR) of “a-” of American Republic Insurance Company (American Republic) (Des Moines, IA) and World Insurance Company (World) (Omaha, NE), subsidiaries of American Enterprise Mutual Holding Company (American Enterprise) (Des Moines, IA). The outlook for these ratings is stable.

Additionally, A.M. Best has affirmed the FSR of B++ (Good) and ICR of “bbb+” of Homesteaders Life Company (Homesteaders) (Des Moines, IA). The outlook for these ratings is positive.

These affirmations follow the recent announcement of Homesteaders’ letter of intent to join American Enterprise subject to the conclusion of a satisfactory due diligence process and regulatory approvals. Following the successful completion of the merger, Homesteaders would operate as a distinct company under its current management.

A.M. Best also has affirmed the FSR of B++ (Good) and ICR of “bbb” of World Corp Insurance Company (World Corp) (Omaha, NE), a subsidiary of World. The outlook for these ratings is stable.

American Enterprise, a mutual holding company with annual net premiums written totaling over $650 million, primarily markets individual major medical and Medicare supplement products chiefly in the Midwest. Homesteaders, a mutual company with annual net premiums written totaling over $325 million, is one of the leading providers of pre-need life insurance.

A.M. Best believes the merger will provide business diversification to American Enterprise, as the company has witnessed increased competition in its core accident and health lines of business in recent years. Homesteaders will benefit from gaining access to capital, which should materially improve its risk-based capital position and serve to alleviate some of the investment exposure the company holds in commercial mortgages.

For Best’s Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings.

Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com.