KBRA Publishes Rating Report for NSS Life

NEW YORK--(BUSINESS WIRE)--On March 6, 2020, Kroll Bond Rating Agency (KBRA) assigned an insurance financial strength rating (IFSR) of BBB+ with a Stable Outlook to the National Slovak Society of the United States of America (NSS Life or the Society). NSS Life is a 130-year-old fraternal benefit society domiciled in McMurray, Pennsylvania. NSS Life is America’s oldest Slovak fraternal society and the ninth largest fraternal organization in the United States, based on net admitted assets.

The rating reflects the Society’s profitable operations, solid balance sheet, low-risk product offerings, conservative asset portfolio, and growing membership base. NSS Life’s low operating expense profile facilitates growth in earnings. In addition, the Society has sound liquidity, favorable lapse experience, excellent persistency and good financial flexibility, with access to capital from the Federal Home Loan Bank of Pittsburgh and no debt outstanding. Countering these strengths are NSS Life’s reliance on interest-sensitive business, noteworthy exposure to spread compression and reinvestment risk, and the need for its ERM program to mature and get fully integrated into the organization’s strategies and decision-making processes. The vast majority (94%) of the Society’s reserves is related to annuities. Both its legacy annuity blocks (with roughly half of members’ account values held in products with guarantees of 3% or higher) and new deposits (with relatively high current crediting rates) are susceptible to spread compression in the current low interest rate environment.

To view the report, click here.

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About KBRA and KBRA Europe

KBRA is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider and is a certified Credit Rating Agency (CRA) by the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA.