On Friday, May 8, 2020, Fitch Ratings affirmed the insurance financial strength rating for Securian Financial at AA (Very Strong) and maintained our Stable outlook.
The AA (Very Strong) rating is Fitch’s third highest of 19 ratings. The rating and outlook apply to Securian Financial affiliates Minnesota Life Insurance Company and Securian Life Insurance Company.
Major rating agencies are reevaluating insurance companies due to the impact of the COVID-19 pandemic. This announcement follows Fitch’s recent decision to revise their Rating Outlook on the U.S. life insurance industry to “Negative” due primarily to “the decline in interest rates, equity market declines, increased credit losses, rating migration and elevated mortality.”
According to Fitch, our stable outlook was maintained because “while expected losses tied to the economic fallout of the coronavirus pandemic will pressure the company’s earnings and capital, their financial performance and balance sheet fundamentals are expected to remain largely in line with rating expectations.”
Fitch also cited our ratings continue to reflect our “extremely strong capitalization...very strong investment asset and risk profile ... and diverse earnings profile.”
Fitch’s affirmation of our ratings and Stable outlook, especially at this time, reflects how our historical approach to smart growth and strong enterprise risk management keeps Securian Financial well-positioned to manage through uncertainty.