Press Release|Insurance

KBRA Upgrades Rating for Catholic Financial Life

1 Dec 2023   |   New York


KBRA upgrades the insurance financial strength rating (IFSR) to A from A- for Catholic Financial Life. The Outlook has been revised from Positive to Stable.

The rating upgrade reflects Catholic Financial Life’s (CFL or the Society) continued execution of its business strategy focused on relatively lower risk life products and the company’s consistent track record in risk-based capital and surplus growth underpinned by sustained, consistent trends of profitability and balanced earnings. CFL remains fully committed to fraternalism and the support of its members. Overall balance sheet growth, as well as margins and capital trends have generally been favorable relative to fraternal and non-fraternal peer averages. Further, reserves remain generally balanced across life and annuity products and are complemented by an investment portfolio comprised of low-risk, high-quality fixed income securities. Across the past year, the impact of heightened disintermediation risk has been relatively muted and largely mitigated by the implementation of various risk management strategies, such as the adjustment of crediting rates, the introduction of new products and successful internal exchanges.

The Society remains one of the largest Catholic fraternal membership societies in the United States. CFL continues to focus on writing life products and growing membership within its current product offerings supported by ongoing technological enhancements. Demonstrated success in acquiring and/or merging with other fraternals, successfully integrating the in-force blocks of business, and recognizing efficiencies from the added economies of scale remain favorable credit considerations. CFL’s corporate governance is strong and enterprise risk management practices are progressive and continue to evolve. Lastly, in KBRA’s opinion, CFL’s management team remains a strength as it executes its forward-looking growth and technological strategy.

Balancing these credit strengths is an annuity block with a significant but declining portion of contracts subject to withdrawal with minimal or no surrender charges, although this exposure remains mitigated to an extent by generally higher historical persistency. In addition, execution risk persists for planned near-term technology enhancements, specifically with respect to its policy administration system, though current completion timeframes appear to be on track.

To access rating and relevant documents, click here.

Click here to view the report.



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

About KBRA

Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency 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 by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider.

Doc ID: 1002770

805 Third Avenue
29th Floor
New York, NY 10022
+1 (212) 702-0707
Contact Us

© 2010-2024 Kroll Bond Rating Agency, LLC. All Rights Reserved. Kroll Bond Rating Agency, LLC is not affiliated with Kroll Inc., Kroll Associates Inc., KrollOnTrack Inc., or their affiliated businesses.