Press Release|Insurance
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KBRA Affirms Rating for Modern Woodmen of America

29 Sep 2025   |   New York

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KBRA affirms the AA- insurance financial strength rating (IFSR) for Modern Woodmen of America ("Modern Woodmen", "MWA", or "the Society"). The Outlook is Stable.

The rating reflects Modern Woodmen of America’s robust capitalization, conservative investment and liquidity profile, and stable operating performance. The Society reported a CAL RBC ratio of 527% at year-end 2024, with total adjusted capital increasing to approximately $3.1 billion, supported by strong earnings generation and no financial leverage. The investment portfolio is conservatively positioned, with nearly 97% investment-grade securities, minimal below-investment-grade holdings, and minimal watchlist exposure, while liquidity remains ample at $7.7 billion. Operating fundamentals are underpinned by consistent earnings, as net income rose to $300 million in 2024, net operating gain improved to $174 million, and net investment income increased 9% to $730 million. Life insurance in force surpassed $45 billion, reflecting solid growth supported by a nationwide career agency system focused on targeted recruiting and improved retention.

Balancing these strengths are the Society’s reliance on annuities, which accounted for roughly three-quarters of 2024 premiums and deposits, leaving earnings sensitive to rate and disintermediation dynamics. Membership continues to decline despite growth in life sales, while the Society also faces execution risk on strategic plan initiatives, particularly in delivering the targeted expansion of life premiums, field force growth, and policy count stabilization.

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: 1011451