KBRA reaffirms Gleaner Life’s ‘A-‘ stable rating

February 12 - June 16, 2024

Gleaner Life Insurance Society’s insurance financial strength rating (IFSR) has been reaffirmed by Kroll Bond Rating Agency. For the seventh consecutive year, KBRA affirmed Gleaner Life’s IFSR rating as “A-” with an outlook rated “Stable.” An “A” rating is the third-best letter grade of 11 IFSR ratings given by KBRA.

“The rating reflects Gleaner's conservative balance sheet, historically stable operating results, disciplined product pricing and crediting rate practices, and its diverse asset portfolio,” KBRA stated. “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,” KBRA continued. “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.”