OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best Co. has affirmed the financial strength rating (FSR) of A- (Excellent) and assigned an issuer credit rating (ICR) of "a-" to Pekin Life Insurance Company (Pekin, IL) (OTC: PKIN.OB - News). The outlook for both ratings is stable.

The ratings reflect Pekin Life's integral role within the Pekin Insurance Group, strong risk-adjusted capitalization, consistently positive net statutory operating results and diversified lines of business that support the company's varied target markets in its core regional geographical areas of five Midwest states. Pekin Life has been a significant contributor to its property/casualty-based parent organization and continues to add value on a long-term basis. Over the past five years, Pekin Life has recorded consistent new business growth from its ordinary life segment despite the challenging life insurance environment.

Somewhat offsetting these positive factors are Pekin Life's high reliance on the parent company's distribution platform, geographical concentration risk and a trend of mixed operating results from its diverse lines of business. However, its net gains from operations have remained positive in each of the past five years, helping the company to organically grow its capital and surplus funds.

For Best's Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings.

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.

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Source: A.M. Best