Moody’s Investors Service Places National Life Under Review for an Upgrade

(August 10, 2007) - Moody’s Investors Service has announced that it has placed on review for possible upgrade the ratings of NLV Financial Corp. (NLV, Baa3 senior debt rating) and its two insurance subsidiaries, National Life Insurance Co. and Life Insurance Company of the Southwest, which are both rated A3 for insurance financial strength.

In a news release announcing the ratings review, Moody’s said National Life “has made substantial improvements in its risk profile by improving its GAAP and statutory operating profitability, substantially raising the statutory capitalization of its operating insurance companies, aggressively managing expense levels, maintaining a relatively conservative investment portfolio, and continuing to effectively manage enterprise risk.”

National Life Group is a diversified family of financial service companies that has successfully forged a strong identity as a product innovator. Companies in the group offer a comprehensive portfolio of life insurance, annuity and investment products to help individuals, families and businesses pursue their financial goals.

National Life, a Fortune 1000 company, has $20 billion in assets under management and serves more than 700,000 customers. With 2006 revenue of $1.4 billion and net income of $111 million, National Life Group employs roughly 900 employees, with most located at its home office in Montpelier, Vt. Group companies also maintain offices in Dallas, New York, San Francisco, Boston and Radnor, Pa.

The Group is made up of its flagship company, National Life Insurance Company, founded in Montpelier, Vermont in 1850; Life Insurance Company of the Southwest, Dallas, Texas, and Sentinel Asset Management Inc., Equity Services, Inc. and National Retirement Plan Advisors Inc., all located in Montpelier.