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AM Best Revises Outlooks to Stable for Funeral Directors Life Insurance Company; Upgrades Credit Ratings of Subsidiary


AM Best has revised the outlooks to stable from negative and affirmed the Financial Strength Rating (FSR) of A- (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “a-” of Funeral Directors Life Insurance Company (FDLIC) (Abilene, TX). Concurrently, AM Best has upgraded the FSR to A- (Excellent) from B+ (Good) and the Long-Term ICR to “a-” from “bbb-” of Kentucky Funeral Directors Life Insurance Company (KFDLIC) (Lexington, KY), which is wholly owned by FDLIC. The outlook of these Credit Ratings (ratings) remains stable.

The ratings of FDLIC and KFDLIC reflect the companies’ balance sheet strength, which AM Best categorizes as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM).

The revised outlooks primarily reflect the strengthening of FDLIC’s ERM program. FDLIC has worked over the past 12 months to increase formalization of its risk management practices, including the addition of a dedicated chief risk officer role and further strengthening of cyber risk management practices. AM Best expects the company to further develop and embed its existing risk management practices going forward. The ratings of FDLIC and KFDLIC also reflect their risk-adjusted capital positions being at the strongest level, favorable operating results, good market positions and extensive expertise in the funeral home business. The group continues to post steady earnings, which have strengthened capital over time without using leverage or reinsurance.

This press release relates to Credit Ratings that have been published on AM 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 AM 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 AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.

AM Best is a global rating agency and information provider with an exclusive focus on the insurance industry. Visit www.ambest.com for more information.

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