AM Best has revised the outlooks to positive from stable and affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) of GBU Financial Life (GBU) (Pittsburgh, PA).

The Credit Ratings (ratings) reflect GBU’s balance sheet strength, which AM Best assesses as strong, as well as its strong operating performance, limited business profile and appropriate enterprise risk management (ERM).

The positive outlooks reflect GBU’s long-term improvement in its business profile, which has come more in line with its peers. The company has expanded in its operating jurisdictions, the lines of business it writes and its overall position in the fraternal market. GBU has expanded significantly in recent periods, with large growth in total assets, capital and surplus, membership count, employee count and distribution channels.

The balance sheet strength of GBU is assessed as strong, driven by an adequate level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), and conservative reserving practices. Capital and surplus has increased in recent years due to GBU’s consistent operating income. The operating performance of GBU is assessed as strong, evidenced by above-average investment yields. Net premium growth has been rapid over the past five years, benefiting from increases in membership, a growing distribution network and the higher interest rate environment. GBU’s ERM program is assessed as appropriate as the company has formalized processes, procedures and structures governing the program.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

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