OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best has upgraded the Long-Term Issuer Credit Ratings (Long-Term ICR) to “a+” from “a” and affirmed the Financial Strength Ratings of A (Excellent) of CMFG Life Insurance Company (CMFG Life), the lead life and annuity writer, and MEMBERS Life Insurance Company (Members Life), a life and annuity subsidiary, as well as CUMIS Insurance Society, Inc. and CUMIS Specialty Insurance Company, Inc., (CUMIS) property/casualty subsidiaries. Concurrently, A.M. Best has upgraded the Long-Term ICR to “bbb+” from “bbb” of CUNA Mutual Financial Group, Inc., an intermediate holding company within the group. Additionally, A.M. Best has upgraded the Long-Term Issue Credit Rating to “a-” from “bbb+” on the $85 million, 8.5% surplus notes issued by CMFG Life due 2030. The outlook of these Credit Ratings (ratings) is stable. The ultimate parent for all companies is CUNA Mutual Holding Company. All operating companies are domiciled in Iowa but headquartered in Madison, WI.
The ratings of CMFG Life reflect its balance sheet strength, which A.M. Best categorizes as strongest, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management (ERM). CMFG Life continues to be a leading provider of life and annuity products within the credit union marketplace. CMFG Life’s balance sheet is supported by consistently increasing absolute and risk-adjusted capitalization, and modest financial and operating leverage. However, A.M. Best notes that there is moderate exposure to higher risk assets within the investment portfolio. The company has reported consistently strong operating results on both statutory and U.S. GAAP basis, supported by favorable growth in its annuity products issued through MEMBERS Life, as well as improvements in its legacy long-term care blocks. The ratings acknowledge strides the group has made in executing on a refocused enterprise wide business strategy, along with modernizing its business profile through improving its credit union members experience and a number of Fintech and Insurtech investments.
The ratings of CUMIS reflect its balance sheet strength, which A.M. Best categorizes as strongest, as well as its adequate operating performance, neutral business profile and appropriate ERM. The rating actions reflect its favorable level of risk-adjusted capitalization, overall operating profitability and well-established position in the credit union segment. The ratings also reflect the benefits CUMIS derives from the financial flexibility and diversified operations of its parent, CMFG Life. These rating factors are offset partially by the execution risk associated with growing its personal lines business, and pressure from general macroeconomic trends and varying market conditions in several of its product lines.
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