Financial Strength Ratings*

Financial Strength Ratings flyer

A.M. Best affirmed Security Benefit Life's (SBL) A+ financial strength rating in February 2003.  This rating also applies to First Security Benefit Life Insurance and Annuity Company of New York (FSBL).  The rating "reflects the company's prominent position in its core 403(b) or  variable tax-sheltered annuity market, sound capitalization and consistently favorable earnings results.  It also recognizes the company's strong distribution capability, stable liability structure and highly focused strategies."

A.M. Best recognizes Security Benefit's established niche position in the retirement planning market as "providing value-added products, proprietary investment management and Dalbar award winning customer service capabilities.  A.M. Best views favorably the diversification the company's investment advisory subsidiary contributes to the organization."  Furthermore, SBL's competitive position is reinforced by its relationship with the NEA, as "the exclusive provider of the NEA Valuebuilder^® Program to the association's members," and by "its strategy to develop and market carefully designed products consistent with clients' needs, which ensures long-term persistency." 

"A.M. Best expects the company's focused strategy of growing its separate account and mutual fund business will continue to contribute to a steady and favorable operating profile in a variety of market conditions."

A.M. Best (February 2003)
 

Standard & Poor's (S&P) assigned an A+ counterparty credit and financial strength rating and the A -1 short-term financial strength rating of SBL in September 2003.  The financial strength rating also applies to First Security Benefit Life Insurance and Annuity Company of New York (FSBL). 

Standard & Poor's revised the outlook from negative to stable, reflecting the "strength and stability of SBL's business profile and earnings improving to levels consistent with the ratings and allowing for the effect of a reasonable range of market conditions." 

The ratings are supported by SBL's "strong position in the 403(b) retirement plan market (tax-sheltered annuities and mutual funds), strong consolidated earnings adequacy, very strong liquidity, and extremely strong capitalization." In addition, the ratings highlight SBL's very strong investment portfolio from a credit quality and risk-return standpoint. S&P believes that SBL's "consistently strong annuity earnings profile is supported by its stable asset base, rising number of contracts in force, low-cost structure, and good expense control."  According to S&P, this earnings profile is expected to result in capitalization that will "remain extremely strong, with a capital adequacy ratio above 300%."

Standard & Poor's (September 2003)  
 

Fitch assigned SBL an A+ insurer financial strength rating and its F1 short-term insurer financial strength rating in April 2005. The financial strength rating also applies to First Security Benefit Life Insurance and Annuity Company of New York (FSBL). The rationale for these ratings cited SBL's "history of solid profitability, a high-quality investment portfolio, good liquidity and a very strong risk-adjusted capital profile."  Other factors cited by Fitch are SBL's "solid position in the 403(b) K-12 market and its exclusive provider relationship for members of the NEA, as this business is typically considered very persistent relative to the overall wealth accumulation business." 

Fitch (April 2005)
 

The long-term insurance financial strength rating for Security Benefit remains A2 (Good) with a stable outlook based on the Company's solid capitalization, strong asset-liability management program and ample liquidity. 

Moody's Investors Service (November 2003)
 

*  All ratings pertain to Security Benefit Life Insurance Company.  All ratings other than the Moody's rating and short-term ratings also apply to First Security Benefit Life Insurance and Annuity Company of New York.  Ratings are assigned by independent, third-party rating agencies and bear no relation to the investment performance of assets held in any of Security Benefit Life Insurance Company's or First Security Benefit Life Insurance and Annuity Company of New York's separate accounts.  Rather, they are good benchmarks of the security and stability of the issuing insurance company.  

A.M. Best's rating represents an overall opinion of an insurance company's ability to meet its obligations to policyholders and is derived by evaluating the financial strength, operating performance and market profile of an insurance company in comparison with quantitative and qualitative standards of a peer life/health industry composite.  A.M. Best ratings range from A++ (superior) to F (in liquidation).

S&P Financial Strength Ratings, Fitch Insurer Financial Strength Ratings and Moody's Insurance Financial Strength Ratings are a current opinion of the financial strength of an insurance organization, and its capacity to meet senior obligations to policyholders and contractholders on a timely basis. The ratings are assigned to the insurance organization itself and do not address the suitability of a particular policy or contract for a specific purpose or purchaser.  

S&P ratings range from AAA (extremely strong) to R (under regulatory supervision) and short-term ratings range from A-1+ (strong) to R (under regulatory supervision).  Fitch ratings range from AAA (exceptionally strong) to D (payment of less than 50% of obligations in case of liquidation) and short-term ratings range from F-1+ (highest credit quality) to D (actual or imminent default).  Moody's financial strength ratings range from Aaa (exceptional) to C (lowest). Moody's short-term insurance financial strength rating are opinions of the ability of issuers to honor short-term financial obligations; P-1 (superior), P-2 (strong), P-3 (acceptable) and NP (does not fall within any of the Prime rating categories).

Ratings do not apply to investment options because they are subject to market risks and may lose value. Investing in mutual funds and variable annuities involves risk and there is no guarantee of investment results.