A.M. Best Affirms Ratings of Securian Financial Group Members.OLDWICK, N.J. -- A.M. Best Co. has affirmed the financial strength rating (FSR (Free System Resource) In Windows 3.x, the amount of unused memory in various 64K blocks reserved for managing current applications. Every open window takes some space in this area. See Windows memory limitation. ) of A+ (Superior) and the issuer credit ratings (ICR (Intelligent Character Recognition or Image Character Recognition) The machine recognition of hand-printed characters as well as machine printing that is difficult to recognize. ) of "aa" of Minnesota Life The Minnesota Life Insurance Company was founded in St. Paul, Minnesota in 1880 as a mutual insurance company. It was originally organized as a mutual because a general distrust of stockholder-owned businesses prevailed at that time and there was a shortage of people willing to buy Insurance Company (Minnesota Life) and its subsidiary, Securian Life Insurance Company (Securian Life) (both of St. Paul St. Paul as a missionary he fearlessly confronts the “perils of waters, of robbers, in the city, in the wilderness.” [N.T.: II Cor. 11:26] See : Bravery , MN). In addition, A.M. Best has affirmed the FSR of A (Excellent) and the ICR of "a" of Cherokee National Life Insurance Company (Macon, GA). The above companies are members of the Securian Financial Group (Securian). Concurrently, A.M. Best has affirmed the debt rating of "a+" on the $125 million 8.25% existing surplus notes due September 2025 of Minnesota Life. The outlook for all ratings is stable. Minnesota Life's debt-to-capital ratio remains within the range for its rating, and the company maintains a favorable fixed coverage ratio to service its outstanding debt. The ratings reflect Minnesota Life's excellent risk-adjusted capitalization, diverse sources of earnings, conservative financial management, sound liquidity position and diverse product portfolio. A.M. Best also notes the organization's investment management capabilities and focus on disciplined asset/liability management Asset/Liability Management A technique companies employ in coordinating the management of assets and liabilities so that an adequate return may be earned. Also known as "surplus management. , which provides considerable insulation from interest rate and disintermediation The elimination of the distributor and/or retailer (the middleman) when making a purchase. The term is used to refer to purchasing directly from a manufacturer's Web site, the benefits of which are convenience, fast turnaround time and sometimes lower prices. risks. Offsetting these rating strengths are Minnesota Life's inconsistent statutory earnings performance in certain product lines, which are impacted by the low yields on its investment portfolio, and the competitive pressures the company faces in its core businesses. Minnesota Life's operating earnings Operating Earnings Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue. Notes: Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before are reflective of increased revenue in many of its core business lines, its conservative financial and expense management strategies and continued focus on increasing distribution and scale. Going forward, A.M. Best expects that Minnesota Life's continued efforts to increase scale and distribution--while maintaining expense efficiencies--will continue to generate more consistency in earnings. For Best's Debt Ratings, all other Best's Ratings Best's rating A rating A.M. Best Co. assigns to insurance companies based on the company's ability to meet its obligations to its policyholders. , 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. |
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