The rating reflects Catholic Order of Foresters’ (COF or the Order) established whole life insurance franchise, increasingly life-oriented reserve mix, predominantly investment grade fixed income portfolio, and continued advancements in governance and risk oversight. Growth in recurring premium life business and a declining proportion of interest-sensitive liabilities support a more stable earnings base and reduce exposure to interest rate spread and surrender risks on annuity products. Improved bond credit quality, adequate liquidity, and sound capital quality, including minimal financial leverage, further support the rating.
Balancing these strengths are COF’s multiyear decline in total capital resources, inconsistent profitability, and high-risk investment exposures that remain elevated relative to capital. Although operating performance improved in 1H26 and annuity outflows moderated, COF has not yet established a sustained track record of capital growth after member…
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