CNFL Citizens Financial (MM)

A.M. Best Co. has affirmed the financial strength ratings (FSR) of B- (Fair) of Citizens Security Life Insurance Company (Citizens Security) (Kentucky), and its wholly-owned subsidiary United Liberty Life Insurance Company (United Liberty Life) (Kentucky). The outlook for both ratings is stable. The companies are both subsidiaries of Citizens Financial Corporation (CNFL) (NASDAQ: CNFL). CNFL is engaged in the business of life, annuities and accident and health insurance through Citizens Security and United Liberty Life. The two life/health subsidiaries maintain an adequate risk-adjusted capital position, improving operating earnings and have reduced their exposure to below investment grade holdings in recent years. Citizens Security has been recording modest increases in its absolute capital position; however, it faces a challenge to maintain adequate levels of risk-adjusted capital. In aggregate, the total value of its equity holdings, real estate and below investment grade holdings pose substantial investment risk. Prior capital increases were largely the result of capital contributions from Citizens Financial Corp., rather than organic growth from earnings. Management has placed an increased emphasis on group accident and health product lines and has tightened its underwriting on existing lines. A.M. Best will continue to monitor the success of this strategy going forward. For Best�s Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings. For current Best�s Ratings, independent data and analysis on more than 1,100 individual life/health companies and A.M. Best groups, please visit www.ambest.com/lh. A.M. Best Co., established in 1899, is the world�s oldest and most authoritative insurance rating and information source. For more information, visit A.M. Best�s Web site at www.ambest.com.