Allied Life: Duff and Phelps Rating Upgraded

       



                                
                    
        ALLIED Life Insurance's  Claims Paying Ability 
                   Upgraded to A+ by Duff & Phelps           
                        Contact Jeff Roling 800-532-1436 ext.4454

Des Moines, Iowa, September 30, 1997--Duff & Phelps Credit Rating Company has
upgraded the "A" (Single-A) claims paying ability rating for ALLIED Life
Insurance Company to "A+"                         

According to Duff & Phelps, the rating action reflects improved operating
trends through the first six months of 1997, particularly in the company's
traditional distribution channel, and strengthened asset/liability management.
Duff & Phelps goes on to say that the rating continues to reflect the company's
strong asset quality, sound capital base and strategic relationship with the
ALLIED Group, its property-casualty affiliate.

ALLIED Life is the major subsidiary of ALLIED Life Financial Corporation
(NASDAQ-ALFC), an insurance holding company.



ALLIED Life Financial Corporation is a holding company that, through its
principal subsidiary, ALLIED Life Insurance Company, underwrites, markets, and
distributes life insurance and annuity products in the United States.


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