The Western and Southern Life Insurance Co. Proposed Surplus Notes Rated 'A'

NEW YORK (S&P Global Ratings) Jan. 11, 2019--S&P Global Ratings said today 
that it has assigned its 'A' subordinated debt rating to The Western and 
Southern Life Insurance Co.'s (WSLIC) proposed issuance of fixed-to-floating 
rate surplus notes due 2069.

We rate these surplus notes two notches below our financial strength rating on 
WSLIC because they are subordinated to policyholder obligations, and payments 
may be deferred due to regulatory restrictions. Additionally, we provide 
intermediate equity credit to these surplus notes subject to a limit of 15% of 
total adjusted capital (TAC) as long as they have at least 20 years until 
maturity. The proposed surplus notes issuance will rank pari passu with any 
future surplus notes.

We expect WSLIC to use the net proceeds from the new surplus notes for general 
corporate purposes which may include the repayment of amounts outstanding 
under the holding company's credit facility in connection with the Gerber Life 
transaction. We estimate leverage for the group following the proposed 
issuance will be below 20% with coverage exceeding 8x; both metrics are 
consistent with our current ratings on Western & Southern Financial Group.

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