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Best’s News & Research Service - December 03, 2020 12:42 PM (EST)

AM Best Affirms Credit Ratings of Knights of Columbus

  • December 03, 2020 12:42 PM (EST)
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Oldwick //BestWire// - AM Best has affirmed the Financial Strength Rating of A+ (Superior) and the Long-Term Issuer Credit Rating of “aa” of Knights of Columbus (the Order) (New Haven, CT). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect the Order’s balance sheet strength, which AM Best categorizes as strongest, as well as its strong operating performance, favorable business profile and appropriate enterprise risk management.

Risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), is assessed as strongest and supported by an invested asset base of good credit quality, mostly investment grade bonds that are highly diversified. There is good quality of capital, with prudent use of reinsurance and no financial leverage. Earnings trends have been positive and generally stable, mainly driven by the ordinary life insurance line of business, along with strong persistency and customer loyalty. The Order is a prominent market participant in their target individual life and annuity market segments. Product offerings emphasize ordinary life products, which are considered less risky and more creditworthy. Long-term care and disability income products are offered with the assistance of third-party administrators and are reinsured. The Order recently entered the asset management market with mutual fund offerings that are consistent with Catholic values.

Partially mitigating factors include increased allocations to less liquid asset classes, such as private placements and alternative assets and return ratios that are low relative to the industry average. Additionally, the Order operates in the ordinary life and individual annuity markets, which can be very competitive.

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 media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.

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 New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.

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