A.M. Best Withdraws Credit Ratings of Zale Life Insurance Company

A.M. Best has affirmed the Financial Strength Rating of B+ (Good)
and the Long-Term Issuer Credit Rating of “bbb-” of Zale Life
Insurance Company (Zale Life) (Phoenix, AZ). The outlook of these
Credit Ratings (ratings) is stable. Concurrently, A.M. Best has
withdrawn the ratings as the company has requested to no longer
participate in A.M. Best’s interactive rating process.

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

Zale Life’s ratings also reflect its solid level of risk-adjusted
capitalization, strong liquidity and the high credit quality of its
investment portfolio. Offsetting rating factors include a very limited
business profile and the immaterial levels of net premiums due to high
utilization of an offshore reinsurance affiliate. Zale Life has
discontinued writing its credit insurance products, which dramatically
diminishes its future business and long-term profitability prospects.

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

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