A.M. Best® Revises National Life Outlook on Debt Ratings and ICRs to Positive

(June 20, 2007) One of the nation’s leading credit rating organizations has issued a positive review of the financial strength of National Life Group.

A.M. Best Company issued its report Friday, June 15 affirming the financial strength rating of A (Excellent) and issuer credit ratings (ICR) of “a” for National Life Group’s insurance subsidiaries, National Life Insurance Company and Life Insurance Company of the Southwest.

A.M. Best also affirmed the existing debt ratings and ICR of “bbb” of NLV Financial Corporation, an intermediate holding company within National Life’s mutual holding company structure. The outlooks for the debt ratings and ICRs have been revised to positive from stable. The FSR is stable.

In its report A.M. Best said the actions “reflect National Life's positive financial trends including solid growth in top-line revenue, operating earnings and capitalization, both on an absolute and risk-adjusted basis. A.M. Best also recognizes the group’s reduced investment risk, stable investment spreads, distribution channel diversification and strengthened enterprise risk management practices.”

National Life Group is a growing and diversified family of financial service companies made up of its flagship company, National Life Insurance Company which was founded in Montpelier, VT. in 1850, as well as Sentinel Asset Management Inc., Equity Services, Inc. and National Retirement Plan Advisors Inc. all of Montpelier; and Life Insurance Company of the Southwest of Dallas, Texas.