Press Release|Insurance
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KBRA Affirms Rating for Catholic Order of Foresters; Maintains Negative Outlook

30 Oct 2026   |   New York

Contacts

KBRA affirms the A- insurance financial strength rating for Catholic Order of Foresters (COF or the Order). The Outlook remains Negative.

The Negative Outlook reflects continued pressure on COF’s total capital position, with total adjusted capital (TAC) declining 21.0% from year-end 2020 to year-end 2025. Although earnings improved in the first half of 2026, surplus and TAC remain below year-end 2024 levels, and sustained capital rebuilding has not yet materialized. KBRA expects risk-adjusted capitalization to remain adequate, but a revision of the Outlook to Stable would require sustained recurring earnings sufficient to stabilize and replenish surplus and TAC after member refunds and new business strain.

The rating reflects COF’s established whole life insurance franchise, increasingly life-oriented reserve mix, and predominantly investment-grade fixed-income portfolio. Growth in recurring-premium life business and a declining proportion of interest-sensitive liabilities support a more stable earnings base and reduce exposure to interest rate spread and surrender risks on annuity products. Improved bond credit quality, adequate liquidity, sound capital quality, including minimal financial leverage, and continued advancements in governance and risk oversight further support the rating.

Balancing these strengths are COF’s inconsistent profitability, high-risk investment exposures that remain elevated relative to capital, and limited access to external sources of capital. The Order’s focused Catholic fraternal market supports member affinity but limits scale and diversification, while declining membership and concentrated distribution remain challenges. The legacy annuity block also remains exposed to renewed rate competition, despite moderating outflows in the first half of 2026.

To access ratings and relevant documents, click here.

Click here to view the report.

Methodology

Disclosures

Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Information on certain affiliations between directors of KBRA Ratings and rated entities or related third parties can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA registered with the US Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. Kroll Bond Rating Agency Japan K.K. is registered as a CRA with the Japan Financial Services Agency. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.

Doc ID: 1017736