A.M. Best Upgrades Issuer Credit Rating of Guarantee Trust Life Insurance Company

A.M. Best has upgraded the Long-Term Issuer Credit Rating
(Long-Term ICR) to “bbb+” from “bbb” and affirmed the Financial Strength
Rating (FSR) of B++ (Good) of Guarantee Trust Life Insurance Company
(GTL) (Glenview, IL). The Credit Rating (rating) outlook for the
Long-Term ICR has been revised to stable from positive, while the
outlook for the FSR remains stable.

The ratings reflect GTL’s balance sheet strength assessment, which A.M.
Best categorizes as very strong, as well as its adequate operating
performance, limited business profile and appropriate enterprise risk
management.

GTL’s rating upgrade is attributed to its very strong risk-adjusted
capital measures, its solid use of reinsurance to mitigate risk exposure
and conservative investment strategies to maximize lower risk returns.
The reported operating earnings trend has been favorable for several
years. This trend was driven by its solid returns from its accident and
health product lines; however, the consolidated premium trend has been
flat following a loss of large producing agent in 2015. A.M. Best notes
that GTL is working to grow sales through existing and new distribution
channels. A.M. Best expects the favorable earnings trends to continue
through the medium term as the company improves its product distribution
through its developing relationships among various sales partnerships.
GTL is a niche player in the supplemental life and health markets,
offering various products aimed at the senior markets, and is one of the
leaders in the rapidly growing hospital indemnity market. The company
has some concentration of business geographically and is operating in
the increasingly competitive senior marketplace.

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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