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FOR IMMEDIATE RELEASE
OLDWICK - DECEMBER 10, 2021 02:32 PM (EST)
AM Best has affirmed the Financial Strength Rating (FSR) of A+ (Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “aa” (Superior) of Minnesota Life Insurance Company and its subsidiary, Securian Life Insurance Company, together referred to as Securian Financial Insurance Group (Securian). AM Best also has affirmed the FSR of A (Excellent) and the Long-Term ICR of “a+” (Excellent) of Securian Casualty Company (Securian Casualty), and the FSR of A (Excellent) and the Long-Term ICR of “a” (Excellent) of Canadian Premier Life Insurance Company (Canadian Premier) (Toronto, ON).
Concurrently, AM Best has affirmed the Long-Term ICR of “a” (Excellent) of Securian Financial Group, Inc. (SFG) (Delaware) and the Long-Term Issue Credit Rating (Long-Term IR) of “a” (Excellent) of SFG’s $500 million, 4.8% senior unsecured notes, due 2048. AM Best also has affirmed the Long-Term IR of “a+” (Excellent) on the $125 million, 8.25% surplus notes, due 2025, issued by Minnesota Life Insurance Company. The outlook of the aforementioned Credit Ratings (ratings) is stable. All companies named above are headquartered in St. Paul, MN, except where specified.
The ratings reflect Securian’s balance sheet strength, which AM Best assesses as strongest, as well as its strong operating performance, favorable business profile and appropriate enterprise risk management (ERM).
Securian’s risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), is assessed at the strongest level, and supports the group’s insurance, business and investment risks. The company’s quality of capital is good, supported by retention of its XXX/AXXX reserves, organic earnings growth and manageable financial leverage and interest coverage metrics that are supportive of its ratings. Invested assets are of high credit quality, with good sector diversification and modest allocations to higher risk assets. Securian’s earnings trends have been generally stable, despite some higher mortality related to the COVID-19 pandemic. Premium growth has compared favorably with life industry averages, and is also supported by recent product offerings and acquisitions. Securian is among the market leaders in its target segments, and has effectively used acquisitions to expand its presence. Lastly, the company benefits from diversification provided by Securian’s holding company, SFG, which includes the asset management and distribution businesses, along with its insurance operations.
The ratings of Securian Casualty reflect its balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate ERM. Securian Casualty has an established presence in the contractual liability market, and continues to leverage its resources to support future product and market expansions. Securian Casualty remains a significant contributor and provides added diversification to Securian Financial Group.
The ratings of Canadian Premier Life reflects its balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate ERM. Since its acquisition by Securian in 2017, Canadian Premier has become increasingly integrated within the enterprise. Earnings trends have been good, though modest relative to the group. These ratings also reflect its strategic importance and support from its parent, which demonstrated its support via a capital contribution in 2020 and its 2021 acquisition of Armour Group, Inc., a distributor and third party administrator in the financial institution market.
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 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.