A.M. Best Upgrades Credit Ratings of Insurance Subsidiaries of OneMain Holdings, Inc.

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A.M. Best has upgraded the Financial Strength Rating (FSR) to B+ (Good) from B (Fair) and the Long-Term Issuer Credit Rating (Long-Term ICR) to bbb- from bb+ of the following wholly owned subsidiaries of OneMain Holdings, Inc. (OneMain) [NYSE:OMF] (formerly Springleaf Holdings, Inc.): American Health and Life Insurance Company (AHLIC) (Fort Worth, TX), Merit Life Insurance Co. (Merit Life) (Evansville, IN) and Triton Insurance Company (Triton) (Fort Worth, TX). The outlook of these Credit Ratings (ratings) is stable.

The ratings of AHLIC and Merit Life reflect their balance sheet strength, which A.M. Best categorizes as strong, as well as their adequate operating performance, AHLICs neutral business profile, Merit Lifes limited business profile and the companies appropriate enterprise risk management (ERM). Additionally, the ratings upgrades of AHLIC and Merit Life reflect the improving risk profile of their parent, OneMain, a consumer finance company. A.M. Best notes that OneMain has made some progress in repaying near-term debt and improving its liquidity, as well as improving operating performance, and the rating upgrades reflect this progress. However, leverage remains high at OneMain and coverage metrics are somewhat modest. AHLIC continues to operate profitably in its core credit insurance businesses. Additionally, A.M. Best considers the risk-adjusted capitalization of both operating entities to be at the strongest level. The business profile of AHLIC reflects its recognized presence in the credit market and the lower risk of its core products. However, A.M. Best notes that the companys distribution is primarily driven by OneMains network of branches. A.M. Best also notes that Merit Lifes business profile is considered limited due to the run-off nature of its operations.

Tritons ratings reflect the companys balance sheet strength, which A.M. Best categorizes as very strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management. In addition, the ratings reflect the risk profile of OneMain, as well as managements expertise in consumer finance-oriented products and the business opportunities derived from OneMain. However, the company is dependent on OneMain as its primary distribution source and has significant concentration in credit insurance products. A.M. Best recognizes Tritons historically strong operating results, although recent trends show volatility in operating expenses. In addition, Tritons future financial constraints were considered in terms of underwriting performance trends and dividends, as these constraints may stress risk-adjusted capitalization needed to support growth.

This press release relates to Credit Ratings that have been published on A.M. Bests website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see A.M. Bests Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Bests Credit Ratings. For information on the proper media use of Bests Credit Ratings and A.M. Best press releases, please view Guide for Media – Proper Use of Bests Credit Ratings and A.M. Best Rating Action Press Releases.

A.M. Best is a global rating agency and information provider with a unique focus on the insurance industry. Visit www.ambest.com for more information.

Copyright 2018 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

Kate Steffanelli
Senior Financial Analyst—L/H
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908 439 2200, ext. 5063

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Janet Hernandez
Senior Financial Analyst—P/C
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908 439 2200, ext. 5767

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Christopher Sharkey
Manager, Public Relations
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908 439 2200, ext. 5159

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Jim Peavy
Director, Public Relations
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439 2200, ext. 5644

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