Securian Financial Group Inc.

The stable outlook reflects our expectation that Securian will defend its positions in its core markets and maintain its operating performance commensurate with the ratings. We expect capital adequacy to remain at the 'AAA' level, financial leverage to be less than 20%, and fixed-charge coverage to exceed 5x over next 12-24 months. We could lower our ratings in the next 12 to 24 months if the group's competitive position deteriorates due to a weakening market position, profitability consistently lags similarly rated peers', the company's product mix shifts toward riskier offerings, or capital adequacy drops significantly below the 'AAA' level for a sustained period. We are unlikely to raise our ratings in the next 24 months. Real U.S. GDP growth of

...S&P Global Ratings expects Securian Financial Group Inc. to maintain its strong business metrics and diversified product portfolio. Securian holds top-10 market positions in major lines of business including group life, indexed universal life, pension risk transfer, and credit life and disability products. Additionally, the company offers asset management solutions and is growing its presence via organic sales and acquisitions in the Canadian market. Business diversity, though diminished, remains a strength of Securian's. Profitability was stressed in 2022 owing to COVID-19 mortality, which stabilized toward the latter half of 2022, as well as interest-rate-driven derivatives and equity market impacts. Business line diversity has aided in offsetting these losses. However, in 2022, Securian exited its recordkeeping business and announced plans to exit its retail wealth business in 2023, which narrows the company's overall business diversity. Excellent capitalization will likely remain a...

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