While financial ratings agency A.M. Best has affirmed CMFG Life Insurance Co.’s financial strength as excellent, the firm continues to list the company’s outlook as stable.
The A rating applies to CMFG Life, formerly called CUNA Mutual Insurance Society, before the company restructured to a mutual holding company on Jan. 31.
According to CUNA Mutual Group, CMFG Life’s parent company, the A rating is the third-highest rating of 16 categories of ratings A.M. Best issues.
A.M. Best also affirmed the debt rating of bbb+ on the $85 million, 8.5%, 20-year surplus notes issued by CMFG Life and the rating of B++ of MEMBERS Life Insurance Co., a subsidiary of CMFG Life.
In its affirmation of the company’s financial strength, A.M. Best said: “The ratings of CMFG Life acknowledge its continued position as the leading provider of life/health insurance products to members and employees of credit unions, its more than adequate risk-adjusted capitalization as measured by Best’s Capital Adequacy Ratio, consistently positive net operating gains and improved balance sheet on a consolidated basis.”
A.M. Best also said “CMFG Life continues to maintain a well-diversified investment portfolio and has taken initiatives to improve the overall quality of its balance sheet, such as decreasing its equity portion of the investment portfolio over the past two years to reduce market volatility.”