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). AM Best also has affirmed the FSR of A (Excellent) and the Long-Term ICR of “a+” (Excellent) of Securian Casualty Company (Securian Casualty). 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). Concurrently, AM Best has affirmed the FSR of A- (Excellent) and the Long-Term ICR of “a-” (Excellent) of Securian Specialty Lines, Inc. (Securian Specialty) (Austin, TX).

At the same time, 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. AM Best also has affirmed the Long-Term IR of “a+” (Excellent) 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 of Securian reflect its 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 some acquisition activity. The group does maintain positive overall liquidity, with several sources of liquidity available if necessary. Financial leverage remains modest and manageable, along with interest coverage metrics that are supportive of Securian’s 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 elevated 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 growth.

Securian remains highly diversified by earnings and distribution, while continuing to expand its reach, most notably in Canada, with the most recent acquisition of Sun Life’s sponsored markets business that closed last year. Recent earnings have been driven by improved mortality, some portfolio actions and rapidly rising interest rates. The rapidly rising rates have resulted in losses on derivatives used to hedge variable products. Securian also has had an overall declining trend in investment yield impacted by one-time reinsurance transactions in prior years.

The ratings of Securian Casualty 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.

Securian Casualty’s balance sheet strength is supported by the strongest level of risk-adjusted capitalization, as measured by BCAR, favorable gross leverage measures which compare well to the credit composite average, reflecting low dependence on reinsurance, and a conservative investment portfolio. Operating performance has been profitable and bolstered by 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 due to changing market dynamics. 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 its integration within the group and remains a significant contributor of earnings and 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 is a newly formed surplus lines carrier and is a wholly owned subsidiary of Securian Casualty. The ratings consider Securian Specialty’s role as a member of Securian. Initially, Securian Specialty began offering products adjacent to what Securian Casualty currently offers to lenders. The business plan calls for an expansion to all 50 states over the next several years and Securian Specialty will leverage 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 for the next five years. Operating performance metrics are expected to be comparable with those of the credit composite average, while an underwriting loss is expected during the implementation phase. 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, declined to very strong from strongest in 2023, as it was affected by the acquisition of Sun Life's creditor and affinity blocks of business, as well as some business strain. Through organic growth and business acquisitions in recent years, Canadian Premier is becoming increasingly prominent in the finance company and auto-dealer markets, as evidenced by higher premiums recently. The ratings also reflect the increasing strategic importance of Canadian Premier to its parent.

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