Sammons Financial Group Inc.

The stable outlook reflects our expectation that Sammons will maintain its strong competitive position with its well-balanced product portfolio relative to peers', as well as its proven ability to generate profitable growth in all its key business segments. We also expect it to maintain capital adequacy above the 'AA' confidence level per our RBC model. We could lower our ratings in the next 12-24 months if Sammons experiences a sustained decline in operating performance, a significant loss of market position or brand strength that ultimately would hurt its competitive edge, or if statutory capital adequacy falls significantly below the 'AA' rating level per our RBC model. We are unlikely to raise our ratings in the next 24 months, but we

...Sammons Financial Group Inc.'s diverse product portfolio and consistent operating performance differentiates it from peers. Sammons Financial Group Inc. maintains a well-balanced product portfolio and steady operating performance as measured by return on assets (ROA). We expect the company to maintain ROA close to 70 basis points (bps) over next two to three years, supported by growth in premiums, offset by the effects of the COVID-19 pandemic and prolonged low interest rates. Sammons is committed to maintaining capital significantly above the '##' confidence level per our capital model. Our risk-based capital (RBC) model forecasts that Sammons will be able to maintain very strong capital through 2023, based on stable earnings generation without an aggressive investment policy. The company's conservative and well-diversified investment portfolio increases its resilience to economic stress. More than two-thirds of Sammons' fixed-income securities are class 1 according to the National Assn....

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