Thrivent Financial for Lutherans

The stable outlook reflects our expectation that Thrivent will sustain its very strong competitive position; better-than-peer persistency and operating performance; and capital redundancy at the 'AAA' level, per our RBC model, through the next two years. We could lower our ratings on Thrivent in the next two years if its operating performance deteriorates to a level in line with lower rated peers' or its capital adequacy weakens to a level we expect will remain below our 'AAA' confidence level. We could also lower the rating if we lower the rating on the U.S. sovereign. We are unlikely to raise the ratings in the next two years given Thrivent's U.S.-focused operations. Real U.S. GDP growth of about 0.7% in 2023 and

...Thrivent Financial for Lutherans continues to enjoy a better-than-peer persistency ratio, driven by its affinity with its members, which in turn leads to better-than-peer profitability. As the largest not-for-profit fraternal benefit society that operates in the highly competitive domestic markets, Thrivent shares a common bond of Christianity with its members. This affinity leads to one of the lowest lapse rates in the industry, at around 2%. This persistency level, as well as Thrivent's commitment to disciplined pricing, have helped Thrivent enjoy a top quartile return on assets, compared to its similarly rated peers'. Capitalization and risk-sharing are major financial strengths for Thrivent. Thrivent has a substantial capital redundancy at the '###' level, per our risk-based capital (RBC) model, and most of its products are participating. The company recently increased its policyholder dividends 37% because its profits have been outperforming expectations. We believe the excess capital...

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