Securian Financial, a mutual holding company that provides a range of financial products and services, has launched Securian Specialty Lines, Inc., a new surplus lines insurance company, to provide additional innovative insurance solutions to financial institutions and associations.
Credit ratings agency AM Best has assigned a Financial Strength Rating of A- (Excellent) and a Long-Term Issuer Credit Rating of “a-” (Excellent) to Securian Specialty, with the outlook assigned to these ratings being stable.
According to the agency, the ratings reflect Securian Specialty’s balance sheet strength, which AM Best assesses as very strong.
The agency also cited the company’s adequate operating performance, limited business profile and appropriate enterprise risk management (ERM).
Moreover, AM Best’s ratings also consider Securian Specialty’s role as a member of Securian Financial Group, Inc.
It should be noted that Securian Specialty is a wholly owned subsidiary of Securian Casualty Company (Securian Casualty).
Initial plans call for Securian Specialty to offer products adjacent to what Securian Casualty currently offers to lenders.
However, the business plan calls for an expansion to all 50 U.S. states over the next five years, which will see Securian Specialty leverage Securian Casualty’s existing distribution network, as well as new distributors.
As well as this, AM Best notes that Securian Specialty’s strong balance sheet strength is underpinned by projected strongest risk-adjusted capitalisation, as measured by Best Capital Adequacy Ratio (BCAR).
David Seidel, Securian Financial’s U.S. head of Affinity Solutions, commented: “For decades, we have been a go-to provider of protection solutions for financial institutions and associations. We are excited to use the new capabilities available through Securian Specialty Lines to bring even more innovative solutions to our clients and their customers in these markets. Securian Financial continuously seeks additional ways to address our clients’ evolving needs by providing cost-effective solutions that both manage their risk and offer new products to their customers.”
