S&P Announces: AmerUs Group Co. Ratings Affirmed; Subsidiary Ratings Withdrawn; Outlook Stable.

Business Editors

NEW YORK--(BUSINESS WIRE)--Jan. 30, 2004

On Jan. 30, 2004, Standard & Poor's Ratings Services affirmed its ratings on AmerUs Group Co. and its related entities (collectively, AmerUs Group; see ratings list). The outlook is stable.

In addition, Standard & Poor's has withdrawn its 'BB+' counterparty credit and financial strength ratings on AmerUs subsidiary IL Annuity.

The ratings are based on the companies' consolidated strong capital position and strong operating performance. Somewhat offsetting these factors is AmerUs Group's modestly aggressive business strategy, as the first mutual holding company (MHC) willing to go public and fully demutualize. AmerUs is also considered to have a modestly risky strategy as it includes a history of acquisitions.

The financial strength ratings on AmerUs Life Insurance Co., American Investors Life Insurance Co., Indianapolis Life Insurance Co. (Indianapolis Life), and Bankers Life Insurance Co. of NY, which are the members of AmerUs Life Insurance Group, are based on the companies' improved operating performance, increased diversification of earnings and distribution sources, and continuation of strong revenue growth. Additional strengths to the ratings include the group's strong business profile, very strong capitalization, and strong earnings performance. These positive factors are somewhat offset by a challenging interest rate environment and somewhat reduced financial flexibility following the PRIDES issuance in the second quarter of 2003. In addition, the AmerUs Group faces the challenges associated with sustaining recent growth in its life insurance segment and its limited exposure to interest rate risk.

The AmerUs Group has reported strong operating performance with third-quarter 2003 GAAP net pretax ROA of more than 80 basis points based on Standard & Poor's model. The company's capital adequacy was about 152% as of Sept. 30, 2003, based on Standard & Poor's model, with modest leverage and strong coverage.