Sammons Financial Group Inc.

The stable outlook reflects our expectation that Sammons will maintain its strong competitive position with a 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 to 24 months if Sammons experiences a sustained decline in operating performance or 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

...Sammons Financial Group Inc.'s diverse products and consistent operating performance differentiate it from peers. We expect the company to maintain a return on assets (ROA) close to 100 basis points (bps) over the next two to three years, supported by growth in premiums. However, we expect this growth to be offset by volatile macroeconomic conditions as a result of continued supply-chain disruptions--exacerbated by the Russia-Ukraine conflict--that have led to higher prices, particularly for food and energy, and much more aggressive Federal Reserve policy to fight these higher prices. Sammons is committed to maintaining capital significantly above the '##' confidence level per our capital model. Our risk-based capital (RBC) model forecasts Sammons will maintain very strong capital through 2024, based on its stable earnings generation without an aggressive investment policy. The company's conservative and well-diversified investment portfolio increases its resilience to economic stress....

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