OLDWICK, N.J. - (Business Wire)
A.M. Best Co. has affirmed the financial strength rating (FSR) of A++ (Superior) and issuer credit ratings (ICR) of
“aa+
” of
Thrivent Financial for Lutherans and
Thrivent Life Insurance Company (Thrivent) (Minneapolis, MN). The outlook for both ratings is stable.
The ratings of Thrivent are based on its strong market presence within the Lutheran community, favorable level of risk-adjusted capitalization, consistently positive statutory operating results in its core lines of business and good asset liability management. Thrivent continues to demonstrate strong affinity and name recognition within its Lutheran base by providing diversified financial services products and fraternal benefits programs. Both statutory and GAAP surplus has risen steadily over the past five years, led by positive earnings performance and investment gains.
Partially offsetting these strengths are Thrivent’s declining trends of net written premium, high exposure to interest sensitive fixed annuities and increased level of exposure to more volatile invested assets including, asset-backed securities, Alt-A and subprime residential mortgage loans, private equity and below investment grade bonds. Net written premium trends have been declining in each of the past five years due to Thrivent’s evolving distribution platform and intense competition from other large insurers. Although Thrivent operates as a fraternal benefit society, it still faces intense competition from commercial carriers, particularly in its individual life and retirement savings segments. Thrivent’s increased level of exposure to risky assets relative to its unassigned funds could lead to investment losses, as the U.S. credit and equity markets remain highly volatile. However, A.M. Best notes that Thrivent carries significant levels of excess surplus to offset any potential investment losses.
For Best’s Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings.
Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com.
A.M. Best Company
Analysts
Joseph McGowan, 908-439-2200, ext. 5255
joseph.mcgowan@ambest.com
or
Raj Shah, 908-439-2200, ext. 5409
raj.shah@ambest.com
or
Public Relations
Jim Peavy, 908-439-2200, ext. 5644
james.peavy@ambest.com
or
Rachelle Morrow, 908-439-2200, ext. 5378
rachelle.morrow@ambest.com
