A.M. Best Upgrades Ratings of Security Life Insurance Company of America

A.M. Best Co. has upgraded the financial strength rating to B++ (Good) from B+ (Good) and issuer credit rating (ICR) to “bbb” from “bbb-” of Security Life Insurance Company of America (Security Life) (Minnetonka, MN). The outlook for the FSR has been revised to stable from positive, and the outlook for ICR is positive.

The upgrades reflect Security Life’s strengthened capital position, improved operating earnings and its established niche in the vision and small group and individual dental market. In conjunction with its acquisition by PCM, Inc. in early 2007, Security Life eliminated all existing debt as well as its employee stock ownership plan (ESOP) at its holding company, SAFE.

Additionally, favorable net income at year end was driven by premium growth in its dental and vision business and improved loss ratios in both products. With its strengthened capital position, Security Life terminated its dental reinsurance agreement early in first quarter 2008. However, A.M. Best believes that Security Life may be challenged to grow its business at the same profitability margins, given the increasingly competitive environment in its core markets.

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.