AM Best has affirmed the Financial Strength Rating (FSR) of A+ (Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “aa” (Superior) of Minnesota Life Insurance Company and its subsidiary, Securian Life Insurance Company, together referred to as Securian Financial Insurance Group (Securian). Concurrently, AM Best has affirmed the FSR of A (Excellent) and the Long-Term ICR of “a+” (Excellent) of Securian Casualty Company (Securian Casualty). AM Best also has affirmed the FSR of A- (Excellent) and the Long-Term ICR of “a-” (Excellent) of Securian Specialty Lines, Inc. (Securian Specialty) (Austin, TX). In addition, AM Best has affirmed the FSR of A (Excellent) and the Long-Term ICR of “a” (Excellent) of Canadian Premier Life Insurance Company (Canadian Premier) (Toronto, Ontario, Canada).

Lastly, AM Best has affirmed the Long-Term ICR of “a” (Excellent) of Securian Financial Group, Inc. (SFG) (Delaware) and the Long-Term Issue Credit Rating (Long-Term IR) of “a” (Excellent) of SFG’s $500 million, 4.8% senior unsecured notes, due 2048.

The outlook of these Credit Ratings (ratings) is stable. All companies are headquartered in St. Paul, MN, except where specified.

The ratings reflect Securian’s balance sheet strength, which AM Best assesses as strongest, as well as its strong operating performance, favorable business profile and appropriate enterprise risk management (ERM).

Securian’s risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), continues to be assessed at the strongest level, and supports the group’s insurance, business and investment risks. The BCAR recently experienced a slight downward trend, largely due to operating losses and recent acquisition activity, but is projected to recover in the near term. The group maintains favorable liquidity, with several sources available if necessary. Financial leverage remains modest and manageable, along with interest coverage metrics that are supportive of Securian’s current ratings. Invested assets are mainly of higher credit quality, with good sector diversification and modest allocations to higher risk assets. AM Best notes that Securian has allocations in commercial mortgage loans, but this exposure is partially mitigated by its strong mortgage underwriting program and overall good performance. Securian’s investment allocation into private corporate bonds is also experiencing continued growth. There was a restructured mortgage loan in 2024, Securian’s first since 2020, but there are no foreclosed or delinquent mortgages in the overall portfolio.

Securian remains highly diversified by earnings and distribution, while continuing to slowly expand its reach, most notably in Canada through Canadian Premier. The expected sales pipeline is positive for Securian with brand strategy getting traction with increased awareness.

Recent earnings have been mainly driven by improved mortality and some portfolio actions, as well as organic growth with rapidly rising interest rates that are now indicating an overall slowdown. The rapidly rising rates have resulted in losses on derivatives used to hedge variable products. Securian also demonstrated an overall declining trend in investment yield, which was impacted by one-time reinsurance transactions in prior years; however, this has begun to trend upward, though it is still relatively modest compared with the industry average. Securian plans additional product expansion in the near term with possible reinsurance transactions as well.

The ratings of Securian Casualty reflects its balance sheet strength, which AM Best assesses as very strong as well as its adequate operating performance, neutral business profile and appropriate ERM.

Securian Casualty’s balance sheet strength assessment is supported by the strongest level of risk-adjusted capitalization, as measured by BCAR, favorable gross leverage measures that reflect low dependence on reinsurance and a conservative investment portfolio. However, balance sheet strength has been dampened by dividend payments to its parent. Operating performance has been profitable and bolstered by generally favorable underwriting and investment income, although the company’s metrics trail the credit composite average. Securian Casualty has demonstrated a sound understanding of the market it operates in; however, growth has been volatile and profitability has been challenged by market dynamics over the past year. The company has an established presence in the contractual liability market and continues to leverage its resources to support future product and market expansions. In addition, the ratings reflect enhancement given Securian Casualty ‘s integration within the group and its significant earning contributions, which provides added diversification to Securian.

The ratings of Securian Specialty reflect its balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate ERM.

Securian Specialty began writing business in the third quarter of 2024 and is a wholly owned subsidiary of Securian Casualty. The ratings consider Securian Specialty’s role as a member of Securian. Initially, Securian Specialty is offering products adjacent to what Securian Casualty currently offers to lenders. The company is leveraging Securian Casualty’s distribution network, as well as new distributors.

Securian Specialty’s very strong balance sheet strength is underpinned by projected strongest risk-adjusted capitalization, as measured by BCAR, and a sound business plan. Operating performance metrics are expected to be comparable with those of the credit composite average. The ratings also consider the execution risk inherent in startup organizations and the potential challenges management faces to execute on the business plan.

The ratings of Canadian Premier reflect its balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate ERM.

Risk-adjusted capitalization, as measured by BCAR, increased to the strongest level from very strong, mainly due to the impact of additional capital growth and improvement in bond-credit clarifications as compared with the previous year when Sun Life’s financial institution and association business was acquired, as well as a surplus decline as some was consumed to support credit life growth. Canadian Premier is becoming increasingly prominent in the finance company and auto-dealer markets, as evidenced by recent higher premiums. The ratings also reflect the increasing strategic importance of Canadian Premier to its parent.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

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