OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has affirmed the Financial Strength Rating (FSR) of A+ (Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “aa” 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+” of Securian Casualty Company (Securian Casualty), and the FSR of A (Excellent) and the Long-Term ICR of “a” of Canadian Premier Life Insurance Company (Canadian Premier) (Toronto, ON). Additionally, AM Best has affirmed the FSR of A- (Excellent) and the Long-Term ICRs of “a-” of American Modern Life Insurance Company and its subsidiary, Southern Pioneer Life Insurance Company.
Concurrently, AM Best has affirmed the Long-Term ICR of “a” of Securian Financial Group, Inc. (SFG) (Delaware) and the Long-Term Issue Credit Rating (Long-Term IR) of “a” of SFG’s $500 million 4.8% senior unsecured notes, due 2048. AM Best also has affirmed the Long-Term IR of “a+” on the $125 million 8.25% surplus notes, due 2025, issued by Minnesota Life Insurance Company. The outlook of these 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 categorizes as strongest, as well as its strong operating performance, favorable business profile and appropriate enterprise risk management (ERM). The balance sheet assessment is supported by consistent organic growth in total capital and the strongest level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR). Additionally, AM Best views Securian’s investment portfolio as high quality with favorable sector diversification and modest exposure to higher risk asset classes. Securian’s investment portfolio is also complimented by a strong asset-liability matching program. The strong operating performance has been supported by consistent performance in its core markets. The addition of new products in recent years, such as fixed index annuities and pension risk transfer, has helped to further enhance the group’s business profile. The company also benefits from the diversification of Securian’s holding company, SFG, which include other life/health and property/casualty insurers in the United States and Canada, asset management businesses and distributions services.
The ratings reflect Securian Casualty’s balance sheet strength, which AM Best categorizes as very strong, as well as its adequate operating performance, neutral business profile and appropriate ERM. Securian Casualty continues to establish a broader presence in the contractual liability market. In recent years, Securian Casualty has focused on case management, which has further stabilized risk-adjusted capitalization and operating returns.
The ratings reflect Canadian Premier’s balance sheet strength, which AM Best categorizes as very strong, as well as its adequate operating performance, neutral business profile and appropriate ERM. The company’s third quarter-to-date 2018 performance has shown favorable growth in premiums and earnings, as well organic growth in capital. The ratings also reflect the financial strength and strategic support provided by the parent organization.
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