Press Release

A.M. Best Upgrades Four Penncorp Subsidiaries, Removes One From Under Review, Affirms the Rest

CONTACT: Jeffrey Dunsavage
(908) 439-2200, ext. 5618

OLDWICK, N.J., Jan. 21, 1997--Effective immediately, A.M. Best Co. has raised its ratings on American-Amicable Life Insurance Co. and its subsidiary, Pioneer American Life Insurance Co., both of Waco, Texas, to "A-" (Excellent) from "B++" (Very Good). At the same time, the ratings on Integon Life Insurance Co. and its subsidiary, Georgia International Life Insurance Co., Winston-Salem, N.C., have been raised from "B+" (Very Good) to "B++" (Very Good).

American-Amicable Life and Pioneer American Life both primarily market life, medical and annuity products through worksite marketing programs to businesses, U.S. military personnel and federal employees. This rating change indicates the companies' recent success in increasing their new business, as well as adequate capitalization and increasing profitability.

Integon Life and Georgia International Life market mostly individual life and fixed-benefit products, along with some annuity products, through independent agents. This rating change reflects the successful assimilation of these entities into the PennCorp Financial group, which has resulted in improved capitalization and a more stabilized asset and liability environment.

In addition, United Companies Life Insurance Co. had its rating removed from under review status and affirmed at "A-" (Excellent), while Southwestern Life Insurance Co., Constitution Life Insurance Co. and Union Bankers Insurance Co., all of Dallas; Pioneer Security Life Insurance Co., of Waco, Texas; and Professional Insurance Co. and Occidental Life Insurance Company of North Carolina, both of Raleigh, N.C., all had their ratings affirmed at "B++" (Very Good).

The remainder of the PennCorp life insurance subsidiaries had their ratings affirmed.

A.M. Best Co., established in 1899, is America's oldest and most widely recognized insurance rating and information source.

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Copyright © 1997 by A.M. Best Company, Inc.