AM Best improves the credit ratings of American Memorial Life Insurance Company and TruStage Life of Canada; Confirms the credit ratings of CUNA Mutual Holding Company subsidiaries

ALDUICK, NJ, December 7, 2023—(BUSINESS WIRE)–AM Best raised the Financial Strength Rating (FSR) to A (Excellent) from A- (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) to “a+” (Excellent) from “a-” (Excellent) of American Memorial Life Insurance Company (AMLIC) (Rapid City, SD) and TruStage Life of Canada (TLOC) (Ontario, Canada). At the same time, AM Best affirmed FSR of A (Excellent) and Long-Term ICR of “a+” (Excellent) of CMFG Life Insurance Company (CMFG LIFE) and MEMBERS Life Insurance Company (MEMBERS Life). The outlook for these credit ratings (ratings) is stable. These companies are the life/health subsidiaries of CUNA Mutual Holding Company (CUNA Mutual) and are collectively known as CMFG Life Group.

At the same time, AM Best also affirmed Union Security Insurance Company’s (USIC) (Topeka, Kansas) FSR of B++ (Good) and Long-Term ICR of ‘bbb’ (Good). AM Best also affirmed the FSR of A (Excellent) and the Long-Term ICR of “a+” (Excellent) of CUMIS Insurance Society, Inc., CUMIS Specialty Insurance Company, Inc. and CUMIS Mortgage Reinsurance Company (Madison, WI). These companies are property/casualty subsidiaries of CUNA Mutual and collectively referred to as CUMIS. AM Best also affirmed TruStage Financial Group, Inc.’s long-term ICR at ‘bbb+’ (Good). (headquartered in Madison, Wisconsin), an intermediate holding company of CUNA Mutual. Finally, AM Best has affirmed the long-term issue credit rating of ‘a-‘ (excellent) on the $85 million, 8.5% excess notes due 2030 issued by CMFG Life. The outlook for these ratings is stable. All operating companies are located in Waverly, IA unless otherwise noted.

CMFG Life Group’s ratings reflect the strength of its balance sheet, which AM Best rates as very strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management (ERM). CMFG Life has shown a consistent trend of surplus growth supported by strong earnings. Although the group has recently experienced volatility in insurance and investment income, earnings remain positive. CMFG Life will also benefit from two pre-need companies, AMLIC and TLOC, which were acquired in 2021. These entities will provide the group with additional income and further diversify its portfolio of product offerings.

USIC’s ratings reflect the strength of its balance sheet, which AM Best rates as strong, as well as its marginal operating results, limited business profile and appropriate ERM. Operating performance and business profile ratings reflect USIC’s lack of new business development in recent years. USIC benefits from the operational support it receives from TruStage.

CUMIS’ ratings reflect the strength of its balance sheet, which AM Best rates as the strongest, as well as its adequate operating performance, neutral business profile and appropriate ERM. Favorable trends in premium growth and pre-tax operating income continue to increase CUMIS’ surplus. Although the group has faced challenges with its personal lines products, its overall insurance profitability has historically outperformed the industry.

This press release refers to the credit ratings that are published on the AM Best website. For all rating information relating to the release and relevant disclosures, including details of the agency responsible for issuing each of the individual ratings set out in this release, please see AM Best’s Recent assessment activity Web page. For additional information on the use and limitations of Credit Score opinions, please see Guide to Best Credit Ratings. For information on the proper use of Best’s credit ratings, Best’s performance ratings, Best’s preliminary credit ratings, and AM Best’s press releases, see A guide to the proper use of Best’s ratings and reviews.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information visit www.ambest.com.

Copyright © 2023 by AM Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

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