Market Overview

A.M. Best Affirms Credit Ratings of Sammons Financial Group, Inc. and Its Subsidiaries


A.M. Best has affirmed the Financial Strength Rating of A+
(Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of
"aa-" of Midland National Life Insurance Company (Midland
National) and North American Company for Life and Health Insurance
(North American) (both domiciled in West Des Moines, IA). In addition,
A.M. Best has affirmed the Long-Term ICR of "a-" and the Long-Term Issue
Credit Rating (Long-Term IR) of "a-" on the $200 million 7.0% senior
unsecured notes, due 2043 and the $500 million 4.45% senior unsecured
notes, due 2027, of Sammons Financial Group, Inc. (SFG, Inc.)
(Delaware). The outlook of these Credit Ratings (ratings) is stable.
SFG, Inc. is an intermediate holding company for Midland National and
North American, and is indirectly owned by Sammons Enterprises, Inc.
Midland National and North American – the group's key life/health
insurance subsidiaries – are jointly referred to as the Sammons
Financial Group

The ratings reflect SFG's balance sheet strength, which A.M. Best
categorizes as very strong, as well as its strong operating performance,
favorable business profile and appropriate enterprise risk management.
The ratings also factor in SFG's solid risk-adjusted capitalization, as
measured by Best's Capital Adequacy Ratio (BCAR), to support its
insurance and business risks. The group's trend of positive earnings and
well-managed investment portfolio benefits from the resources and
expertise of its investment manager, Guggenheim Partners Investment
Management, which focuses on prudent credit underwriting expertise as a
means to diversify the company's asset portfolio for yield. As a result,
the group has a high allocation to structured assets such as
asset-backed securities, collateralized loan obligations, mortgage loans
and private placements, which historically have performed well but are
subject to potential higher impairments under stressed economic
scenarios. SFG, Inc.'s financial and operating leverage is considered
well-within an acceptable range at the current ratings level.

SFG holds prominent market positions in the individual life and fixed
indexed annuity marketplaces, with plans to grow its business in Sammons
Retirement Solutions marketing products such as mutual fund IRAs and
variable annuities through wholesale distribution through independent

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
for Media - Proper Use of Best's Credit Ratings and A.M. Best Rating
Action Press Releases

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