OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best has revised the outlooks to stable from negative and affirmed the Financial Strength Rating of A+ (Superior) and the Long-Term Issuer Credit Rating of “aa-” of Woodmen of the World Life Insurance Society (WoodmenLife) (Omaha, NE).
The outlook revisions to stable reflect actions taken by WoodmenLife’s management to offset the impact of low interest rates by reducing the guaranteed minimum interest rates (GMIR) on its annuities and universal life policies, converting older policies to lower GMIRs, and increasing sales of more credit-worthy traditional life products. Additionally, the organization has reported positive trends in operating earnings supporting strong risk-adjusted capitalization and sustained growth in unassigned funds. Partially offsetting Credit Rating (rating) factors are trends of increasing reserves related to interest-sensitive products, declining portfolio yields impacting spread margins, and declining membership totals.
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