AM Best Information Services




BEST'S CREDIT RATING ACTION

Best’s News & Research Service - March 10, 2022 01:01 PM (EST)

AM Best Affirms Credit Ratings of Subsidiaries of CUNA Mutual Holding Company

  • March 10, 2022 01:01 PM (EST)

Oldwick //BestWire// - AM Best has affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a+” (Excellent) of CMFG Life Insurance Company (CMFG Life) and MEMBERS Life Insurance Company (MEMBERS Life). Both 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 has affirmed the FSR of A- (Excellent) and the Long-Term ICR of “a-” (Excellent) of American Memorial Life Insurance Company (AMLIC) (Rapid City, SD). 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). In addition, has AM Best affirmed the FSR of A- (Excellent) and the Long-Term ICR of “a-” (Excellent) of TruStage Life of Canada (TLOC) (Ontario, Canada). Concurrently, AM Best has 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 Credit Ratings (ratings) is stable. All operating companies are domiciled in Waverly, IA, unless otherwise specified.

The ratings of CMFG Life Group reflect 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 is the lead life and annuity writer of CMFG Life Group and continues to be a leading provider of life insurance and annuity products within the credit union marketplace. CMFG Life’s balance sheet is supported by consistently increasing absolute and risk-adjusted capitalization and solid liquidity measures. Partially offsetting these strengths is a moderate exposure to higher risk assets within the investment portfolio. The company consistently reports strong operating results on a statutory and U.S. GAAP basis, supported by favorable growth in its annuity products issued through MEMBERS Life.

The ratings of AMLIC reflect its balance sheet strength, which AM Best assesses as adequate, as well as its strong operating performance, favorable business profile and appropriate ERM.

AMLIC is a top writer of preneed life insurance products in the United States. The company maintains an adequate level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), although its absolute level of capital has grown significantly over the last five years. Liquidity measures are favorable and the company consistently reports pretax operating and net income. AMLIC was acquired by CUNA Mutual from Assurant, Inc. in 2021.

The ratings of USIC reflect its balance sheet strength, which AM Best assesses as adequate, as well as its marginal operating performance, limited business profile and appropriate ERM.

USIC continues to write a small amount of preneed business despite most of its business being in run-off following the sale of its employee benefits business. The company’s run-off business is 100% reinsured. The company maintains an adequate level of risk-adjusted capitalization, as measured by BCAR, as of year-end 2020. During 2021, surplus increased substantially due to significant realized capital gains. The realized capital gains were the result of the sell-off of some invested assets prior to the sale of USIC to CUNA Mutual from Assurant, Inc.

The ratings of TLOC reflect its balance sheet strength, which AM Best assesses as adequate, as well as its strong operating performance, neutral business profile and appropriate ERM.

TLOC is a major writer of preneed business in Canada, holding a significant share of the market. The company also writes some individual life, group life and individual annuities. The company maintains an adequate level of risk-adjusted capitalization, as measured by BCAR, although the absolute level of capital has seen stable and consistent growth over the past five years. The company consistently reports pretax operating and net income. Net premiums written have decreased modestly over the last five years due to declines in non-core business. TruStage Life of Canada, formerly known as Assurant Life of Canada prior to January 2022, was acquired by CUNA Mutual from Assurant, Inc. in 2021.

The ratings of CUMIS reflect its balance sheet strength, which AM Best assesses as strongest, as well as its adequate operating performance, neutral business profile and appropriate ERM.

CUMIS is one of the largest fidelity bond writers in the United States with a dominant position within the credit union marketplace. Other lines of business written include commercial multiperil, debt protection, collateral protection and guaranteed asset protection. The company maintains the strongest level of risk-adjusted capitalization, as measured by BCAR, with a high level of absolute capital and strong growth within the last five years. Liquidity and leverage measures are highly consistent and compare favorably with the industry. Partially offsetting this is a moderate exposure to high-risk assets within its alternative investment portfolio. The company has had favorable underwriting results and strong return measures in the last five years.

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.



Arkansas Property And Liability Insurers Iowa Property And Casualty Insurance Wisconsin Ontario Life Insurers Press Release South Dakota Insurance Property And Casualty Insurers Best's Credit Rating Action Life Insurance


Latest News

More from Best’s News


Trending


More Related Company News

To Submit News go to - https://www.ambest.com/bestweek/submitnews.html