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Ranking Motion:

Moody’s affirms Western & Southern Monetary Group’s

scores; outlook secure

15 December 2021

New York, December 15, 2021 – Moody’s Traders Service has affirmed the A3 senior unsecured

debt score of Western & Southern Monetary Group, Inc. (W&SFG) and the Aa3 insurance coverage monetary

power (IFS) scores of its insurance coverage subsidiaries, The Western and Southern Life Insurance coverage

Firm (WSLIC), Western-Southern Life Assurance Firm (WSLAC), Columbus Life

Insurance coverage Firm (CLIC), Integrity Life Insurance coverage Co. (ILIC), and Nationwide Integrity Life Insurance coverage

Co. (NILIC). The outlook on the scores of W&SFG and its insurance coverage subsidiaries is secure.
A whole record of scores is offered beneath.
RATINGS RATIONALE
In keeping with Moody’s, the score affirmation and secure outlook are primarily based on W&SFG’s glorious

monetary profile that’s supported by the corporate’s robust capitalization, and good monetary flexibility.

The affirmation additionally displays the corporate’s average leverage and powerful protection of curiosity

expense. The corporate maintains good profitability, demonstrates glorious and constant capital

ranges, as evidenced by a consolidated NAIC company-action degree risk-based capital ratio (CAL

RBC) of 460% as of September 30, 2021 and a resilient stability sheet underneath stress eventualities with

constant funding efficiency.
The score company famous that W&SFG’s scores are primarily based on the group’s stable market place,

numerous distribution channels and product providing of retirement and safety merchandise. The

firm has been bettering the productiveness and value effectiveness of its distribution networks; it

has additionally been additional creating its digital and direct-to-consumer (DTC) capabilities leveraging the

Gerber model to develop its safety enterprise and monetary wellness initiatives for the center market.

Because of this, the corporate has skilled constant development over the previous few years in life insurance coverage

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and stuck annuity traces of enterprise.
These credit score elements are tempered by W&SFG’s modest market place and model relative to its

score, its focus in spread-based companies (relative to taking part entire life) and the

intense competitors in core enterprise segments. W&SFG’s underlying working earnings excluding

web capital positive factors have additionally been modest and decrease than trade averages. As well as, the corporate

has sizable exposures to beneath investment-grade bonds, structured securities, equities, and

different investments, and a complete return centered funding technique that topics the corporate to

fairness market volatility.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The next elements might result in an improve of the scores of W&SFG and its life subsidiaries:

1) GAAP return on capital (ROC) constantly at or above 8% (ex. AOCI) with out growing the

threat profile of its liabilities; 2) Continued worthwhile product line enlargement in core companies,

enabling W&SFG to achieve materials market share and nationwide model consciousness leveraging its a number of

distribution capabilities; 3) Excessive threat property of lower than 85% of shareholders’ fairness; and 4) Adjusted

monetary leverage (ex. AOCI) stays beneath 15%.

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Conversely, the next elements might decrease the corporate’s scores: 1) Return on capital beneath 4%;

2) Sustained decline in consolidated NAIC CAL RBC ratio of lower than 375% or a discount in capital

of greater than 10%; 3) Materials improve in larger threat companies (e.g., fastened annuities and variable

annuities with secondary ensures) above present ranges as a share of complete reserves; or 4)

Elevated asset threat heightening funding losses in a stress state of affairs.
The next scores had been affirmed:
Western & Southern Monetary Group, Inc. — senior unsecured debt at A3;
The Western and Southern Life Insurance coverage Firm — insurance coverage monetary power at Aa3; surplus

notes at A2 (hyb);
Columbus Life Insurance coverage Firm — insurance coverage monetary power at Aa3;
Integrity Life Insurance coverage Co. — insurance coverage monetary power at Aa3;
Nationwide Integrity Life Insurance coverage Co. — insurance coverage monetary power at Aa3;
Western-Southern Life Assurance Firm — insurance coverage monetary power at Aa3.
Outlook Actions:
Western & Southern Monetary Group, Inc.: Outlook Stays Steady;
The Western and Southern Life Insurance coverage Firm: Outlook Stays Steady;
Columbus Life Insurance coverage Firm: Outlook Stays Steady;
Integrity Life Insurance coverage Co.: Outlook Stays Steady;
Nationwide Integrity Life Insurance coverage Co.: Outlook Stays Steady;
Western-Southern Life Assurance Firm; Outlook Stays Steady
W&SFG is a Cincinnati, Ohio-based monetary providers holding firm that gives life and well being

insurance coverage, annuity, mutual fund, retirement planning and funding merchandise. The Western and

Southern Life Insurance coverage Firm, the group’s main life insurance coverage subsidiary, reported $12.3

billion in complete statutory property and $6.5 billion in complete statutory capital at September 30, 2021.
The principal methodology utilized in these scores was Life Insurers Methodology printed in

September 2021 and accessible at

https://www.moodys.com/researchdocumentcontentpage.aspx?

docid=PBC_1254133

. Alternatively, please see the Ranking Methodologies web page on

www.moodys.com for a replica of this system.
REGULATORY DISCLOSURES
For additional specification of Moody’s key score assumptions and sensitivity evaluation, see

the sections Methodology Assumptions and Sensitivity to Assumptions within the disclosure

type. Moody’s Ranking Symbols and Definitions could be discovered at:

https://www.moodys.com/

researchdocumentcontentpage.aspx?docid=PBC_79004

.

For scores issued on a program, collection, class/class of debt or safety this announcement

supplies sure regulatory disclosures in relation to every score of a subsequently issued bond or

notice of the identical collection, class/class of debt, safety or pursuant to a program for which the

scores are derived solely from present scores in accordance with Moody’s score practices.

For scores issued on a assist supplier, this announcement supplies sure regulatory disclosures

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in relation to the credit standing motion on the assist supplier and in relation to every specific credit score

score motion for securities that derive their credit score scores from the assist supplier’s credit standing.

For provisional scores, this announcement supplies sure regulatory disclosures in relation to the

provisional score assigned, and in relation to a definitive score that could be assigned subsequent

to the ultimate issuance of the debt, in every case the place the transaction construction and phrases haven’t

modified previous to the project of the definitive score in a fashion that might have affected the

score. For additional data please see the scores tab on the issuer/entity web page for the respective

issuer on www.moodys.com.
For any affected securities or rated entities receiving direct credit score assist from the first entity(ies)

of this credit standing motion, and whose scores could change on account of this credit standing motion, the

related regulatory disclosures shall be these of the guarantor entity. Exceptions to this strategy

exist for the next disclosures, if relevant to jurisdiction: Ancillary Providers, Disclosure to rated

entity, Disclosure from rated entity.
The scores have been disclosed to the rated entity or its designated agent(s) and issued with no

modification ensuing from that disclosure.
These scores are solicited. Please confer with Moody’s Coverage for Designating and Assigning Unsolicited

Credit score Scores accessible on its web site www.moodys.com.
Regulatory disclosures contained on this press launch apply to the credit standing and, if relevant, the

associated score outlook or score overview.
Moody’s common ideas for assessing environmental, social and governance (ESG) dangers in

our credit score evaluation could be discovered at

http://www.moodys.com/researchdocumentcontentpage.aspx?

docid=PBC_1288235

.

The International Scale Credit score Ranking on this Credit score Ranking Announcement was issued by considered one of Moody’s

associates exterior the EU and is endorsed by Moody’s Deutschland GmbH, An der Welle 5, Frankfurt

am Primary 60322, Germany, in accordance with Artwork.4 paragraph 3 of the Regulation (EC) No

1060/2009 on Credit score Ranking Businesses. Additional data on the EU endorsement standing and on the

Moody’s workplace that issued the credit standing is offered on www.moodys.com.
The International Scale Credit score Ranking on this Credit score Ranking Announcement was issued by considered one of Moody’s

associates exterior the UK and is endorsed by Moody’s Traders Service Restricted, One Canada

Sq., Canary Wharf, London E14 5FA underneath the legislation relevant to credit standing businesses within the UK.

Additional data on the UK endorsement standing and on the Moody’s workplace that issued the credit score

score is offered on www.moodys.com.
Please see www.moodys.com for any updates on adjustments to the lead score analyst and to the

Moody’s authorized entity that has issued the score.
Please see the scores tab on the issuer/entity web page on www.moodys.com for added regulatory

disclosures for every credit standing.
Bob Garofalo

VP-Sr Credit score Officer

Monetary Establishments Group

Moody’s Traders Service, Inc.

250 Greenwich Road

New York, NY 10007

U.S.A.

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JOURNALISTS: 1 212 553 0376

Shopper Service: 1 212 553 1653
Scott Robinson, CFA

Affiliate Managing Director

Monetary Establishments Group

JOURNALISTS: 1 212 553 0376

Shopper Service: 1 212 553 1653
Releasing Workplace:

Moody’s Traders Service, Inc.

250 Greenwich Road

New York, NY 10007

U.S.A.

JOURNALISTS: 1 212 553 0376

Shopper Service: 1 212 553 1653

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