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Standard &
Poor's reaffirms Knights of Columbus AAA rating
K of C's investment portfolio has "very strong credit
quality" 
NEW HAVEN, CT - For the 16th consecutive year, the Knights of
Columbus insurance program has earned Standard & Poor's highest rating: AAA
(Extremely Strong). With more than 140 years experience, S&P is the
financial industry's foremost independent rating bureau, providing investment,
credit, and risk analyses of financial institutions around the world.
"K
of C is achieving its primary objective of providing members and their families
with high-quality, low-cost insurance products," the 2008 S&P rating report
said. The Knights of Columbus insurance program has "a stable outlook," and in
addition, its "capitalization is expected to remain extremely strong, and
liquidity is expected to remain extremely strong also."
The report
cited the strengths of the K of C's operational and financial management,
calling its financial strategy "very conservative, as demonstrated by its
capital structure, investment portfolio, and approach to business growth." It
further claimed that "K of C's capital adequacy, as measured by Standard &
Poor's capital model, is among the strongest in the industry."
Referring to the K of C's management of its assets, the S&P report
stated, "the investment portfolio has very strong credit quality, with the
majority of assets being invested in publicly traded investment-grade bonds.
Management's strategy is to grow its business conservatively by offering
profitable products and adhering to strict underwriting standards. Standard
& Poor's expects this level of conservatism to continue."
"The
company returned 87% of its earnings to its members in 2007," S&P added.
"Its consistently strong profitability is attributable to high persistency
rates, favorable mortality experience, and strong investment returns over the
past 10 years."
Supreme Knight Carl A. Anderson welcomed the news from
S&P, and noted that "despite the difficulties suffered by so many well-known
financial institutions due to the sub-prime mortgage crisis, we have not only
remained solvent but improved our financial stability, while continuing to
provide top quality products and service to our members."
The Knights of
Columbus recently received an A.M. Best Company rating of A++ (Superior) for the
33rd consecutive year. The K of C is one of only five insurance providers in
North America to receive the highest ratings from both Standard & Poor's and
A.M. Best, as well as certification from the Insurance Marketplace Standards
Association (IMSA) for ethical business practices.
Founded 126 years
ago, the Knights of Columbus is a fraternal benefit society and is the world's
largest lay Catholic organization with more than 1.75 million members. Last year
members of the Knights of Columbus donated more than 68 million hours of
volunteer service for charitable causes, and contributed more than $144 million
to charity.
August 14, 2008
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