KBRA Affirms Rating for Gleaner Life Insurance Society
19 Jan 2024 | New York
KBRA affirms the A- insurance financial strength rating (IFSR) for Gleaner Life Insurance Society (“Gleaner” or “the Society”). The Outlook is Stable.
The rating reflects Gleaner's conservative balance sheet, historically stable operating results, disciplined product pricing and crediting rate practices, and its diverse asset portfolio. The Society has shifted its strategy to focus more heavily on profitability which has caused a shift in sales tactics towards favoring annuities over life insurance products. KBRA believes that Gleaner continues to employ disciplined product pricing and crediting rate practices on current products and actively adjusts rates to maintain favorable spreads.
Factors balancing these strengths are vulnerability to surrenders and declining membership trends. Gleaner remains exposed to potential spread compression as its portfolio is concentrated in interest sensitive products and remains susceptible to surrenders in the current rate environment. This risk is partially offset by the fact that approximately 94% of Gleaner’s annuity portfolio, net of the reinsurance arrangement, is within the surrender charge period. While membership has exhibited a declining trend, Gleaner views product innovation and sales expansion as keys to drive sustainable membership growth.
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