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| Supreme Knight's Statement on S&P Action 8/8/11 |
The action taken by Standard and Poor's on Monday, August 8, (2011) does not reflect in any way on
the business operations or performance of the Knights of Columbus. S&P’s action – as their statement
indicates – was caused by the downgrade of the rating of the United States in response to this country’s
debt crisis. According to S&P’s statement on the methodology for their decision “the U.S. sovereign
credit rating constrains the long-term ratings on these U.S. insurers.” S&P’s latest release cites the “very
strong financial profiles” and “favorable business profiles” of the Knights of Columbus and other insurers
affected by their rating revision. In addition, they cite the benefit the Knights of Columbus has from our
“affinity relationships with our policyholders.”
Because of our sound and ethical business practices and investment strategies, the Knights of Columbus
is stronger today relative to the industry than it was five years ago. Over the past five years, the life
insurance industry as a whole has seen a 6.8 percent decrease in sales. But during that same time, Knights
of Columbus life insurance sales have grown by 20.7 percent. Since the financial crisis began in 2008, we
have improved both operational performance and the credit quality of our investments. We continue to
have the highest rating possible from A.M. Best (A++) and the highest rating S&P is able to give to any
insurance company based in the United States (AA+). In short, there continues to be no more highly rated
insurer in the United States than the Knights of Columbus, and our members can continue to have the
highest confidence in our performance as a company and in the safety of the money that they have
entrusted to us.
the business operations or performance of the Knights of Columbus. S&P’s action – as their statement
indicates – was caused by the downgrade of the rating of the United States in response to this country’s
debt crisis. According to S&P’s statement on the methodology for their decision “the U.S. sovereign
credit rating constrains the long-term ratings on these U.S. insurers.” S&P’s latest release cites the “very
strong financial profiles” and “favorable business profiles” of the Knights of Columbus and other insurers
affected by their rating revision. In addition, they cite the benefit the Knights of Columbus has from our
“affinity relationships with our policyholders.”
Because of our sound and ethical business practices and investment strategies, the Knights of Columbus
is stronger today relative to the industry than it was five years ago. Over the past five years, the life
insurance industry as a whole has seen a 6.8 percent decrease in sales. But during that same time, Knights
of Columbus life insurance sales have grown by 20.7 percent. Since the financial crisis began in 2008, we
have improved both operational performance and the credit quality of our investments. We continue to
have the highest rating possible from A.M. Best (A++) and the highest rating S&P is able to give to any
insurance company based in the United States (AA+). In short, there continues to be no more highly rated
insurer in the United States than the Knights of Columbus, and our members can continue to have the
highest confidence in our performance as a company and in the safety of the money that they have
entrusted to us.
