A.M. Best Downgrades Ratings of Shenandoah Life Insurance Company

2009-02-12 22:40:07 -

A.M. Best Co. has downgraded the financial strength rating to E (Under Supervision) from B++ (Good) and issuer credit rating to "rs" from "bbb" of Shenandoah Life Insurance Company (Shenandoah Life) (Roanoke, VA).


These ratings were placed under review on November 19, 2008 with developing implications following the announcement of Shenandoah Life's proposed merger with OneAmerica Financial Partners,

Inc. (OneAmerica) (Indianapolis, IN).


On February 11, 2009, OneAmerica notified Shenandoah Life that it had terminated the letter of intent concerning the proposed merger.


On February 12, 2009, the State Corporation Commission of Virginia announced it had been named receiver for Shenandoah Life by the Circuit Court of the City of Richmond.


Shenandoah Life had recorded a large reduction in statutory capital in third quarter 2008 due to investment writedowns. Shenandoah Life reported $78.3 million in statutory capital as of September 30, 2008.


For Best's Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings.


The principal methodologies used in determining these ratings, including any additional methodologies and factors, which may have been considered, can be found at www.ambest.com/ratings/methodology.


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.





A.M. Best Co.

Analysts

Robert Stewart, 908-439-2200, ext. 5232

robert.stewart@ambest.com

or

Raj Shah, 908-439-2200, ext. 5409

raj.shah@ambest.com

or

Public Relations

Jim Peavy, 908-439-2200, ext. 5644

james.peavy@ambest.com

or

Rachelle Morrow, 908-439-2200, ext. 5378

rachelle.morrow@ambest.com