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Auto Club Life Insurance Assigned `BBBpi' Rtg by S&P

8 September 1998

Auto Club Life Insurance Assigned `BBBpi' Rtg by S&P

    NEW YORK--Standard & Poor's CreditWire 9/4/98--Standard & Poor's today assigned its triple-`Bpi' insurer financial strength rating to Auto Club Life Insurance Co.
    The company is licensed in 26 states, and the principle state in which it operates is Michigan. The company commenced operations in 1974. It principally writes individual life and annuity products, and it is a member of Automobile Club Michigan Group, a large insurance group that is affiliated with AAA Michigan/Wisconsin Inc., a member of the American Automobile Association, and provide insurance to its members. American Automobile Association is a leading automotive and travel service provider.
    The following factors were incorporated in the triple-`Bpi' rating:

-- With a Standard & Poor's capital adequacy ratio of 203.5%,
    capitalization is extremely strong.
-- Profitability is good, as indicated by Standard & Poor's earnings
    adequacy ratio of 242.6%.
-- The company is concentrated geographically.
-- At 38.8% of total adjusted capital, unassigned surplus is lower
    than that of higher rated companies.

    `Pi' ratings, denoted with a pi subscript, are insurer financial strength ratings based on an analysis of an insurer's published financial information and additional information in the public domain. They do not reflect in-depth meetings with an insurer's management and are therefore based on less comprehensive information than ratings without a 'pi' subscript. Pi ratings are reviewed annually based on a new year's financial statements, but may be reviewed on an interim basis if a major event that may affect the insurer's financial security occurs. Ratings with a pi subscript are not subject to potential CreditWatch listings.
    Ratings with a pi subscript generally are not modified with 'plus' or 'minus' designations. However, such designations may be assigned when the insurer's financial strength rating is constrained by sovereign risk or the credit quality of a parent company or affiliated group, Standard & Poor's said.---CreditWire