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AM Best Affirms Credit Ratings of Thrivent Financial for Lutherans


AM Best has affirmed the Financial Strength Rating of A++ (Superior) and the Long-Term Issuer Credit Rating (Long-Term ICR) of aa+ of Thrivent Financial for Lutherans (headquartered in Minneapolis, MN) (Thrivent). The outlook of these Credit Ratings (ratings) is stable.

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

The ratings recognize Thrivents favorable persistency from its loyal membership base and efforts to continue to grow despite the challenging environment. Thrivent maintains a diversified product portfolio that is intended to be complementary to its clients 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 companys total in-force business. Thrivents reserves are weighted toward ordinary life, which AM Best views as a more creditworthy liability profile. Thrivent maintains a high quality capital structure, which utilizes no debt and full retention of all product-related risks on its balance sheet. Additionally, its Bests Capital Adequacy Ratio (BCAR) continues to be maintained at the strongest level, and Thrivent utilizes a sophisticated ERM program to manage and report risks, which include a multitude of stress-testing scenarios. Thrivents ERM program has helped it better manage conditions under the current COVID-19 pandemic.

Offsetting rating factors include continued losses within its legacy long-term care block and exposure to living benefit guarantees within variable annuities. Additionally, Thrivent maintains a slightly elevated commercial mortgage loan portfolio as a percentage of total assets, which has continued to perform well during the pandemic so far. Finally, Thrivent has a large percentage of interest-sensitive reserves and a higher-than-average percentage of annuities lacking surrender charge protection. This exposes Thrivent 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 Thrivents 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 Bests 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 Bests Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Bests Credit Ratings. For information on the proper media use of Bests Credit Ratings and AM Best press releases, please view Guide for Media – Proper Use of Bests Credit Ratings and AM Best Rating Action Press Releases.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit

Copyright 2020 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

David Marek

Financial Analyst

+1 908 439 2200, ext. 5340

[email protected]

Edward Kohlberg


+1 908 439 2200, ext. 5664

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Christopher Sharkey

Manager, Public Relations

+1 908 439 2200, ext. 5159

[email protected]

Jim Peavy

Director, Public Relations

+1 908 439 2200, ext. 5644

[email protected]

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