The insurer financial strength rating on Aid Association for Lutherans (AAL) reflects the fraternal benefit association's very strong business position, extremely strong capitalization, very strong operating performance, and excellent investment portfolio. These strengths are partially offset by the challenges AAL faces in improving sales growth and producing consistent earnings growth in a difficult economic environment. In June 2000, AAL and Lutheran Brotherhood (LB; double-'A'-plus financial strength rating) announced that they plan to merge by the end of 2001. Standard & Poor's views the potential merger favorably because of the similarities between the two companies in terms of their target market, financial products, and potential for confronting the sales growth challenges they have faced in the past few years. The combined
