A.M. Best Affirms and Assigns Ratings to Securian Financial Group; Upgrades Ratings of Securian Life Insurance Company

Business Wire, June 1, 2007

OLDWICK, N.J. -- A.M. Best Co. has affirmed the financial strength rating (FSR) of A+ (Superior) and the issuer credit rating (ICR) of "aa" of Minnesota Life Insurance Company (Minnesota Life) (St. Paul, MN). A.M. Best has also affirmed the FSR of A+ (Superior) and assigned an ICR of "aa" to Minnesota Life's subsidiary, Northstar Life Insurance Company (Northstar) (Ithaca, NY). In addition, A.M. Best has upgraded the FSR to A+ (Superior) from A (Excellent) and assigned an ICR of "aa" to Securian Life Insurance Company (Securian Life) (St. Paul, MN). Additionally, A.M. Best has affirmed the FSR of A (Excellent) and assigned an ICR of "a" to Cherokee National Life Insurance Company (Macon, GA). The above companies are members of the Securian Financial Group (Securian) (Minnesota). Securian Life will replace Northstar as the group's strategic New York subsidiary.

Concurrently, A.M. Best has affirmed the debt rating of "a+" on the $125 million 8.25% existing surplus notes due September 2025 of Minnesota Life. The outlook for all ratings is stable. Minnesota Life's debt-to-capital ratio remains within the range for its rating and the company maintains a favorable fixed coverage ratio to service its outstanding debt.

The ratings reflect Minnesota Life's diversified business lines and earnings sources, its well established distribution channels, profitable operations, strong balance sheet and risk-adjusted capitalization. The ratings also acknowledge the conservative business strategies, effective asset/liability management and the ongoing efforts to maintain a competitive edge in its diverse market segments. Offsetting these rating strengths are the fluctuations in earnings experienced in its core product lines in recent years, as well as the ongoing competitive pressure faced in these business lines.

Minnesota Life's operating earnings are reflective of increased revenue in many of its core business lines, its conservative financial and expense management strategies and focus on increasing distribution and scale. The recent consolidation of its individual annuity and retirement plan businesses into one strategic unit, Securian Retirement Savings, has resulted in increased product offerings, creating opportunities for greater economies of scale as the group positions itself to be more competitive in the insurance and financial services industry. A.M. Best expects Minnesota Life's continued efforts to increase scale and distribution--while continuing to manage expense efficiencies--will continue to generate more consistency in earnings going forward.

By June 30, 2007, Securian expects to complete the sale of Northstar to an unaffiliated insurance company. Upon the close of the transaction, A.M. Best will evaluate the ratings of Northstar based on its positioning with its new parent. Prior to the sale, the current in force business of Northstar will be coinsured into Securian Life, which is admitted to write business in all 50 states and is an important component of efforts to increase Securian's presence in New York for the Group and Retirement Savings SBUs. Furthermore, it will expand the presence of the Securian brand as a product underwriter. The products offered through Securian Life will be identical to the products offered through Minnesota Life, except where New York requirements are unique.

Founded in 1899, A.M. Best Company is a full-service credit rating organization dedicated to serving the financial services industries, including the banking and insurance sectors. For more information, visit www.ambest.com.