AIZ Assurant Inc

A.M. Best Co. has assigned a financial strength rating (FSR) of A- (Excellent) and issuer credit rating (ICR) of "a-" to Assurant Life of Canada (ALC) (Toronto, Ontario). Additionally, A.M. Best has affirmed the FSR of A (Excellent) and an ICR of "a" for ALC's U.S. preneed marketing company, American Memorial Life Insurance Company (AMLIC) (Rapid City, SD). All ratings have a stable outlook. AMLIC and ALC operate as the North American preneed life insurance writing companies for Assurant, Inc. (Assurant) (NYSE: AIZ) (New York, NY). The remainder of Assurant's ratings are unchanged. Previously, Assurant had written its Canadian preneed business through a Canadian branch of an affiliate, Union Security Insurance Company. ALC was formed late in 2005, with all Assurant's Canadian preneed business transferred to it on April 1, 2006. Going forward, all new Canadian preneed business will be written through ALC. In November 2005, Assurant discontinued sales through independent funeral homes and certain funeral home chains in the United States. Assurant Preneed now focuses on the Canadian market and Service Corporation International (SCI)-written business in the United States and Canada, where it believes better growth opportunities exist. ALC's assigned rating reflects its strategic role within the Assurant group, its leadership position in the Canadian preneed life insurance market and its multiple distribution sources. As a member of Assurant, ALC also has access to capital on an as-needed basis. Over the past five years, Assurant has become the dominant preneed writer in Canada. However, ALC has not produced the same dollar profits as AMLIC and is not fully integrated with Assurant's remaining U.S. preneed operations. AMLIC operates as Assurant's U.S. preneed marketing company, selling its products through SCI funeral homes. The company has reported favorable statutory operating results in recent years, partially due to lower new business activity. Steps are currently being implemented to increase new business production. Both AMLIC and ALC are reliant on preneed insurance products for all of their premium income. While Assurant Preneed is currently the second largest preneed insurance writer in North America, there is no guarantee that new companies will not enter the market. Historically, many companies have entered and exited the U.S. and Canadian preneed markets. Additionally, the low interest rate environment is challenging to all preneed writers currently, as it tends to make preneed products more expensive. For Best's Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings. For current Best's Ratings, independent data and analysis on more than 1,100 individual life/health companies and A.M. Best groups, please visit www.ambest.com/lh. A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. For more information, visit A.M. Best's Web site at www.ambest.com.