A.M. Best Affirms Ratings of the Kansas City Life Group of Companies

  
    
  
  
    
      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.