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A.M. Best Places Credit Ratings of 5 Star Life Insurance Company Under Review With Developing Implications


A.M. Best has placed under review with developing implications
the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer
Credit Rating of "a-" of 5 Star Life Insurance Company (5 Star
Life) (Lincoln, NE). 5 Star Life is a wholly owned subsidiary of Armed
Forces Benefit Association

The under review with developing implications status reflects a reversal
in the recent trend of operating losses and declining capitalization
ratios that is in line with the current forecast to return to
profitability and achieve stabilized capitalization ratios by year-end
2018. The improvement in operating performance is primarily related to a
significant change in business strategy as 5 Star Life has shifted from
high strain final expense products to worksite products, which have
lower statutory strain and a shorter breakeven period. Additionally,
A.M. Best notes that 5 Star's ultimate parent, AFBA, continues to have
sufficient holding company liquidity to provide ongoing capital support
in the near term, including an explicit net worth maintenance agreement
held for the benefit of 5 Star Life.

A.M. Best will continue to monitor 5 Star Life's interim performance and
capital trends and take appropriate rating actions as near-term results

This press release relates to Credit Ratings that have been published
on A.M. 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 A.M. Best's
Rating Activity
web page. For additional information
regarding the use and limitations of Credit Rating opinions, please view
Best's Credit Ratings
. For information on the proper media
use of Best's Credit Ratings and A.M. Best press releases, please view
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