A.M. Best Assigns Issue Credit Rating to National Life Insurance Companys Newly Issued Surplus Notes

A.M. Best has assigned a Long-Term Issue Credit Rating of “a-” to
the $350 million 5.25 % surplus notes due 2068 issued by National
Life Insurance Company (National Life) (Montpelier, VT). The outlook
assigned to this Credit Rating (rating) is stable. The existing
Financial Strength Rating and Long-Term Issuer Credit Ratings of
National Life and its affiliates are unchanged.

Concurrent with the new surplus note issuance, National Life is offering
to exchange any and all of its existing 10.5% surplus notes due 2039
with additional surplus notes having the same terms as the newly issued
notes. Following the debt issuance, A.M. Best expects National Life’s
balance sheet strength to remain very strong and that financial leverage
and interest coverage metrics will remain within guidelines for the
assigned ratings. National Life intends to use the proceeds of the
issuance for general corporate purposes.

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

A.M. Best is the world’s oldest and most authoritative insurance
rating and information source. For more information, visit www.ambest.com.

Copyright © 2018 by A.M. Best Rating Services, Inc. and/or its
affiliates. ALL RIGHTS RESERVED.

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