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Security Benefit Life Insurance Co. Outlook Revised To Stable From Negative On Capital Model Criteria; Ratings Affirmed

    • On Nov. 15, 2023, we published our revised criteria for analyzing insurers' risk-based capital (see "Insurer Risk-Based Capital Adequacy--Methodology And Assumptions").
    • Security Benefit Life Group (Security Benefit) is redundant at the 99.95% confidence level, in line with our expectations for the company.
    • The revised criteria has not affected our view of capital adequacy, therefore we affirmed the 'A-' long-term financial strength ratings on Security Benefit's operating companies.
    • We revised the outlook to stable from negative, reflecting continued improvement in capital adequacy demonstrated by infusion of capital, higher level of retained earnings, and some de-risking of higher risk assets.

    NEW YORK (S&P Global Ratings) Feb. 28, 2024--, S&P Global Ratings revised its rating outlook on Security Benefit Life Insurance Co. and First Security Benefit Life Insurance and Annuity Co. of New York to stable from negative. At the same time, we affirmed our 'A-' issuer credit and financial strength ratings.

    Impact Of Revised Capital Model Criteria

    The company's capital adequacy, according to our risk-based capital (RBC) model continues to be redundant at the 99.95% confidence level with an increased buffer, commensurate with our very strong capital and earning assessment per our ratings framework. The recalibration of our capital charges to higher confidence levels leads to higher capital requirements related to interest rate risk and liability charges; however, this was offset by an increase in total adjusted capital (TAC) owing to the inclusion of value of in-force.

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    Certain terms used in this report, particularly certain adjectives used to express our view on rating relevant factors, have specific meanings ascribed to them in our criteria, and should therefore be read in conjunction with such criteria. Please see Ratings Criteria at www.spglobal.com/ratings for further information. Complete ratings information is available to RatingsDirect subscribers at www.capitaliq.com. All ratings affected by this rating action can be found on S&P Global Ratings' public website at www.spglobal.com/ratings.

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