Press Release|Insurance
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KBRA Affirms Rating for Catholic Order of Foresters

31 Oct 2025   |   New York

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KBRA affirms the A- insurance financial strength rating for Catholic Order of Foresters (COF or "the Order"). The Outlook has been changed from Stable to Negative.

The change in Outlook from Stable to Negative reflects COF’s 21.7% decline in Capital and Surplus from 2020-2024 and 10.4% decline in Total Adjusted Capital over the same period. While the Order has a stable source of income from its life insurance business and has made a net income in each of the last three years, this has been offset by an increase in reserves with increasing operational expenses. The Outlook also reflects KBRA’s expectation that the Order will maintain adequate capitalization supported by a balanced reserve mix, conservative asset/liability management, and sound liquidity. Favorable life insurance trends, supported by recurring-premium sales and strong persistency, are expected to sustain long-term earnings stability, even as near-term results remain modest. KBRA further expects risk-adjusted capitalization to remain near the upper end of management’s targeted range, with ongoing governance and ERM enhancements and prudent management of exposures that generate earnings volatility.

The rating reflects COF's stable life insurance franchise with strong persistency, the balanced reserve mix with low interest sensitivity, evolving risk management and governance framework, and high credit quality investment portfolio.

Balancing these positive factors include COF's high-risk investment concentration, adequate capitalization with substantial financial flexibility, persistent profitability pressures from small scale and new business strain, elevated annuity disintermediation risk, and the contracting membership and limited market reach.

To access ratings and relevant documents, click here.

Click here to view the report.

Methodologies

Disclosures

Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.

Doc ID: 1011906