Press Release|Insurance

KBRA Affirms Rating for NSS Life

1 Mar 2024   |   New York


KBRA affirms the insurance financial strength rating (IFSR) of BBB+ for National Slovak Society of the United States of America (“NSS Life” or “the Society”). The Outlook is Stable.

Key Credit Considerations

The rating reflects strong operating profitability, consistent investment performance and maintenance of a conservative, high-quality asset portfolio, growing membership base, and favorable trends in capitalization. Bolstered by solid asset performance, increasing annuity premium flows, and spread management, NSS Life’s asset base grew to over $1.8 billion at year-end 2023. Internal capital generation and efficient utilization continues to bolster surplus though KBRA views the Society’s risk based capital position as adequate. In addition to historically favorable spread management, the organization’s earnings profile is further supported by a low operating expense base. Driven by competitive product offerings, NSS Life’s membership base continues to grow organically.

The rating also reflects exposure to spread compression and disintermediation risk while also recognizing that enterprise risk management processes continue to develop. While spread compression driven by legacy minimum guaranteed rates has been less prevalent due to current crediting rates, NSS Life’s strategy to counter disintermediation has temporarily compressed earned spreads. NSS Life’s formal ERM processes continue to develop and mature and, in KBRA’s opinion, are supportive of the company’s risk profile, given the size and complexity of its liabilities.

Balancing these credit strengths are execution risk related to near-term initiatives, business mix and geographic concentration, and key person risk. NSS Life is exposed to execution risk as the Society implements its strategic plan and expands geographically while targeting controlled growth without significant adverse impact on risk based capital or margins. NSS Life’s business profile is concentrated as interest sensitive fixed annuities account for almost all premiums and reserve liabilities. While institutional knowledge is focused with a select group of executive management and department leaders, the company has added mid-level management staff across the last year.

Rating Sensitivities

Sustained earnings and continued favorable nominal and risk-based capital trends which exceed management target, demonstrated enterprise risk management process maturation across the organization, elimination or material reduction of the risk of spread compression and disintermediation, continued demonstrated profitable growth, and a favorable change in risk profile, including material improvement in reserve and business mix, could result in positive rating action. Material adverse change in risk profile, continued decline in or failure to consistently achieve risk-based capital position in line with management target, substantial decline in earnings or material investment losses, substantial uncontrolled growth or lack of credit rates discipline with outsized pressure on earnings and capital growth trends, or departure of key members of the management team without an adequate succession plan could result in negative rating action.

To access rating and relevant documents, click here.



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: 1003338

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