OLDWICK, NJ–(BUSINESS WIRE)–
AM Best affirmed the financial strength rating of A++ (Superior) and the issuer’s long-term credit rating (long-term ICR) of “aa+” (Superior) from Thrivent Financial for Lutherans (Thrivent) (head office in Minneapolis, Minnesota). The outlook for these Credit Ratings (ratings) is stable.

The ratings reflect Thrivent’s balance sheet strength, which AM Best rates as the strongest, as well as its strong operating performance, favorable business profile and very strong enterprise risk management (ERM).

The ratings recognize Thrivent’s favorable persistence through its loyal member base and its efforts to continue to grow despite the difficult economic environment. Thrivent maintains a diverse and well-managed product portfolio that aims to complement the needs of its customers throughout their lifecycle. The company continues to diversify its portfolio to meet the needs of its customers. In 2022, Thrivent added a Whole Life/LTC hybrid product to complete its diversification and plans new products in the future. Thrivent’s reserves are weighted toward ordinary life, which AM Best considers a more solvent liability profile.

In 2021, Thrivent recorded record investment income at just over $4 billiondriven by the strong performance of its private equity investments, which led to a capital increase and surpluses of almost $3 billion. First quarter 2022 earnings remained strong, although capital growth, while positive, was offset by

unrealized losses due to market movements. The company strengthened its liquidity at the end of 2021, adding borrowing capacity to the Federal mortgage bank and uses this capacity for liquidity and spreading of loans. Thrivent maintains a high quality capital structure, which uses no debt and no financial reinsurance or affiliated captives to house redundant reserves. Additionally, Thrivent’s risk-adjusted capitalization continues to be maintained at the highest level, as measured by Best’s Capital Adequacy Ratio (BCAR), and it utilizes a sophisticated ERM program to manage and report risks, which includes a multitude of stress test scenarios accompanied by a clear action plan. Thrivent’s ERM program has helped it weather the headwinds of the COVID-19 pandemic over the past two years.

Offsetting rating factors include historical losses within its former long-term care block, which comprises a small portion of its portfolio. However, Thrivent’s long-term care (LTC) business, which consists of a legacy block in liquidation and a new LTC block, recorded an operating gain in 2021, due to reserve releases. and favorable COVID-related experience over the past two years at its closed site. block of old SLD contracts. Additionally, Thrivent maintains a slightly elevated level of Schedule BA assets, which it has managed well during the pandemic. Additionally, Thrivent has a high percentage of interest rate sensitive reserves and an above average percentage of annuities with no surrender charge protection. This exposes Thrivent to spread compression and given rapidly rising interest rates, it presents a risk of disintermediation within its annuity bloc.

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 relevant disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Assessment Activity Web page. For more information on the use and limitations of credit rating opinions, please see Best Credit Score Guide. For more information on the proper use of Best’s Credit

Ratings, Best performance reviews, Best preliminary credit ratings and AM Best press releases, please see Guide to Proper Use of Best’s Ratings and Reviews.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Based at United Statesthe company does business in more than 100 countries with regional offices in London, amsterdam, dubai, hong kong, Singapore and Mexico City. For more information, visit www.ambest.com.

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Brian Kelher
Financial Analyst

+1 908 439 2200 ext. 5586

[email protected]

Christopher Sharkey
Manager, Public Relations

+1 908 439 2200 ext. 5159

[email protected]

Edward Kohlberg
Director

+1 908 439 2200 ext. 5664

[email protected]

Jeff Mango
General director,

Communications Strategy

+1 908 439 2200 ext. 5204

[email protected]

Source: AM Best