AM Best


AM Best Upgrades Credit Ratings of American Memorial Life Insurance Company and TruStage Life of Canada


CONTACTS:

Christopher Lewis
Financial Analyst
+1 908 882 2014
christopher.lewis@ambest.com

Greg Williams
Senior Director
+1 908 882 2434
greg.williams@ambest.com

Christopher Sharkey
Associate Director, Public Relations
+1 908 882 2310
christopher.sharkey@ambest.com

Al Slavin
Senior Public Relations Specialist
+1 908 882 2318
al.slavin@ambest.com

FOR IMMEDIATE RELEASE

OLDWICK - DECEMBER 07, 2023 03:34 PM (EST)
AM Best has upgraded the Financial Strength Rating (FSR) to A (Excellent) from A- (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) to “a+” (Excellent) from “a-” (Excellent) of American Memorial Life Insurance Company (AMLIC) (Rapid City, SD) and TruStage Life of Canada (TLOC) (Ontario, Canada). Concurrently, AM Best has affirmed the FSR of A (Excellent) and the Long-Term ICR of “a+” (Excellent) of CMFG Life Insurance Company (CMFG LIFE) and MEMBERS Life Insurance Company (MEMBERS Life). The outlook of these Credit Ratings (ratings) is stable. These companies are life/health subsidiaries of CUNA Mutual Holding Company (CUNA Mutual) and collectively referred to as CMFG Life Group.

At the same time, AM Best also has affirmed the FSR of B++ (Good) and the Long-Term ICR of “bbb” (Good) of Union Security Insurance Company (USIC) (Topeka, KS). AM Best has also affirmed the FSR of A (Excellent) and the Long-Term ICRs of “a+” (Excellent) of CUMIS Insurance Society, Inc., CUMIS Specialty Insurance Company, Inc., and CUMIS Mortgage Reinsurance Company (Madison, WI). These companies are property/casualty subsidiaries of CUNA Mutual and collectively referred to as CUMIS. Additionally, AM Best has affirmed the Long-Term ICR of “bbb+” (Good) of TruStage Financial Group, Inc. (headquartered in Madison, WI), an intermediate holding company of CUNA Mutual. Lastly, AM Best has affirmed the Long-Term Issue Credit Rating of “a-” (Excellent) on the $85 million, 8.5% surplus notes, due 2030, issued by CMFG Life. The outlook of these ratings is stable. All operating companies are domiciled in Waverly, IA, unless otherwise specified.

The ratings of CMFG Life Group reflects its balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management (ERM). CMFG Life has displayed a consistent trend of surplus growth, supported by strong earnings. Although the group has recently experienced volatility in underwriting and investment income, earnings remain positive. CMFG Life will also benefit from two pre-need companies, AMLIC and TLOC, which were acquired in 2021. These entities will provide the group with additional income and further diversify its portfolio of product offerings.

The ratings of USIC reflect its balance sheet strength, which AM Best assesses as strong, as well as its marginal operating performance, limited business profile and appropriate ERM. The operating performance and business profile assessments reflect USIC’s lack of new business development in recent years. USIC does benefit from the operational support it receives from TruStage.

The ratings of CUMIS reflects its balance sheet strength, which AM Best assesses as strongest, as well as its adequate operating performance, neutral business profile and appropriate ERM. Favorable trends in premium growth and pre-tax operating income continue to grow CUMIS’s surplus. Although the group has encountered challenges with its personal lines products, its underwriting profitability as a whole has historically outperformed the industry.

This press release relates to Credit Ratings that have been published on AM Best’s 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 AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.


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