KCLI Kansas City Life Insurance Company (QX)

A.M. Best Co. has affirmed the financial strength ratings (FSR) of A (Excellent) and the issuer credit ratings (ICR) of �a� of Kansas City Life Insurance Company (Kansas City Life) (NASDAQ:KCLI) and its subsidiary, Sunset Life Insurance Company of America. Additionally, A.M. Best has affirmed the FSR of B++ (Very Good) and ICR of �bbb+� of Old American Insurance Company (Old American), the group�s final expense life insurance subsidiary. The outlook for all ratings is stable. All companies are located in Kansas City, MO. The ratings reflect the group�s continued strengthening in its capital and risk-based capital position, conservative balance sheet management, stable cash flow from operations and strong statutory profitability. With minimal debt and access to borrowing facilities at favorable rates, Kansas City Life employs prudent cash management that enhances investment returns, which are consistently above the life/health industry average. Additionally, Kansas City Life�s recruitment of middle-market general agents as its core distribution focus, along with its secondary distribution channel of marketing agreements with non-life insurance carriers, continues to result in individual life sales growth. Offsetting these positive rating factors are the five-year declining trend in premium and deposits, interest rate sensitivity due to increased fixed deferred annuity balances without surrender charge protection and continued losses from the group insurance segment. In addition, Kansas City Life lacks sufficient scale in its accident and health lines, as well as in its variable life and annuity businesses. As for Old American Life, A.M. Best believes that the company must reverse the declining trend in its new and renewal premiums, while minimizing the statutory strain from new business in order to ensure long-term capital growth. 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. A.M. Best Co. has affirmed the financial strength ratings (FSR) of A (Excellent) and the issuer credit ratings (ICR) of "a" of Kansas City Life Insurance Company (Kansas City Life) (NASDAQ:KCLI) and its subsidiary, Sunset Life Insurance Company of America. Additionally, A.M. Best has affirmed the FSR of B++ (Very Good) and ICR of "bbb+" of Old American Insurance Company (Old American), the group's final expense life insurance subsidiary. The outlook for all ratings is stable. All companies are located in Kansas City, MO. The ratings reflect the group's continued strengthening in its capital and risk-based capital position, conservative balance sheet management, stable cash flow from operations and strong statutory profitability. With minimal debt and access to borrowing facilities at favorable rates, Kansas City Life employs prudent cash management that enhances investment returns, which are consistently above the life/health industry average. Additionally, Kansas City Life's recruitment of middle-market general agents as its core distribution focus, along with its secondary distribution channel of marketing agreements with non-life insurance carriers, continues to result in individual life sales growth. Offsetting these positive rating factors are the five-year declining trend in premium and deposits, interest rate sensitivity due to increased fixed deferred annuity balances without surrender charge protection and continued losses from the group insurance segment. In addition, Kansas City Life lacks sufficient scale in its accident and health lines, as well as in its variable life and annuity businesses. As for Old American Life, A.M. Best believes that the company must reverse the declining trend in its new and renewal premiums, while minimizing the statutory strain from new business in order to ensure long-term capital growth. 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.