OLDWICK, N.J.–(BUSINESS WIRE)–AM Best has affirmed the Financial Strength Rating of A++
(Superior) and the Long-Term Issuer Credit Ratings of “aa+” of Thrivent
Financial for Lutherans and its subsidiary, Thrivent Life
Insurance Company (both headquartered in Minneapolis, MN) (together
known as Thrivent Financial). The outlook of these Credit Ratings
(ratings) is stable.

The ratings reflect Thrivent Financial’s balance sheet strength, which
AM Best categorizes as strongest, as well as its strong operating
performance, favorable business profile and very strong enterprise risk

The ratings also recognize Thrivent Financial’s continued growth by
expanding its customer membership in the Christian community, as well as
favorable persistency from its loyal membership base. Thrivent Financial
maintains a diversified product portfolio that is intended to be
complementary to its members’ needs over their life cycles. As a result,
it maintains some exposure to product lines with higher risk, including
long-term care and variable annuities, although variable annuity risk
with guaranteed living benefits make up a relatively small portion of
the company’s total in-force business. AM Best also notes that Thrivent
Financial’s reserves are weighted toward ordinary life, which AM Best
views as a more creditworthy liability profile. In addition, Thrivent
Financial maintains a high quality capital structure, which utilizes no
debt and full retention of all product-related risks on its balance
sheet. In addition, its Best’s Capital Adequacy Ratio (BCAR) continues
to be maintained at the strongest level, and Thrivent Financial utilizes
a sophisticated ERM program to manage and report risks, which include a
multitude of stress-testing scenarios.

Offsetting rating factors include continued losses within its legacy
long-term care block and exposure to living benefit guarantees within
variable annuities. Additionally, Thrivent Financial maintains a
slightly elevated commercial mortgage loan portfolio as a percentage of
total assets. Finally, Thrivent Financial has a large percentage of
interest-sensitive reserves and a higher-than-average percentage of
annuities lacking surrender charge protection. This exposes Thrivent
Financial to spread compression given the continued low interest rate
environment, and disintermediation risk within its annuity block should
interest rates rise significantly. AM Best also notes Thrivent
Financial’s challenges to continue to grow premiums and membership in
the competitive life insurance market landscape.

This press release relates to Credit Ratings that have been published
on AM Best’s website. For all rating information relating to the release
and pertinent disclosures, including details of the office responsible
for issuing each of the individual ratings referenced in this release,
please see AM Best’s
Rating Activity
web page. For additional information
regarding the use and limitations of Credit Rating opinions, please view
Best’s Credit Ratings
. For information on the proper media
use of Best’s Credit Ratings and AM Best press releases, please view
for Media – Proper Use of Best’s Credit Ratings and AM Best Rating
Action Press Releases

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David Marek
Financial Analyst
+1 908 439
2200, ext. 5340

[email protected]

Edward Kohlberg
+1 908 439 2200,
ext. 5664

[email protected]

Christopher Sharkey
Manager, Public Relations
908 439 2200, ext. 5159

[email protected]

Jim Peavy
Director, Public Relations
+1 908
439 2200, ext. 5644

[email protected]