S&P lowers Torchmark

Standard & Poor's said it lowered the counterparty credit rating on Torchmark Corp. to A from A+, the senior unsecured local-currency rating to A from A+ and preferred stock local-currency rating to BBB+ from A-.

The agency also lowered the counterparty credit ratings on subsidiaries American Income Life Insurance Co., United American Insurance Co., Globe Life & Accident Insurance Co., and Liberty National Insurance Co., all considered strategically important, to AA- from AA, and lowered the counterparty credit rating on United Investors Life Insurance Co., considered not strategically important, to A from A+.

The outlook is stable.

According to S&P, the downgrades reflect the group's weakened competitive position following the second year of slowing growth in new sales, which are across multiple distribution sources.

The ratings on Torchmark also reflect its extremely strong operating performance and operating company capitalization, the agency said.

The stable outlook also reflects the expectations for improvements in new business production, S&P said.

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