Press Release|Insurance
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KBRA Affirms Ratings for Penn Mutual

29 Oct 2026   |   New York

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KBRA affirms the AA Insurance Financial Strength Ratings (IFSR) of the Penn Mutual Life Insurance Company (PML) and its subsidiaries, The Penn Insurance and Annuity Company, Penn Insurance and Annuity of NY, and Vantis Life Insurance Company. KBRA also affirmed the A+ rating on PML’s surplus notes due 2061. The Outlook for all ratings is Stable.

Penn Mutual’s ratings reflect the company’s execution of its commitment to mutuality, a very strong capital base relative to its risk profile and the industry, a conservative yet high-performing investment portfolio, highly effective distribution channels that leverage differentiated technology and flexibility, a very strong liquidity profile along with robust asset/liability management, and diverse sources of sustainable profits. Penn Mutual’s consistently increasing GAAP earnings reflect strong underlying business fundamentals. Penn Mutual’s key distribution channels include Strategic Alliances, 1847Financial, National Accounts, and Core Independents. Its target market is affluent individuals, professionals, and owners of small-to-medium-sized businesses. The Penn Mutual group offers a comprehensive suite of products and services spanning life insurance, annuities, wealth management and institutional asset management. Of its life insurance products, it places a particular emphasis on whole life. At 2Q2026, whole life accounted for 40% of total life GAAP reserves. KBRA generally views participating whole life policies as exhibiting a more favorable risk/return profile relative to other life products. Annuities are sold as a complementary product.

Balancing these strengths are the highly competitive market for affluent-segment financial services and products and the challenge to statutory profitability of new business strain, including the self-funding of a significant portion of reserves related to its universal life with secondary guarantees (ULSG) product. Given its increased market share in targeted products over the past decade, KBRA views Penn Mutual as managing competition well.

Factors that could positively impact the rating include heightened growth and stability in earnings and profitability metrics while maintaining strength in capital and liquidity, and additional earnings diversification by business line without compromising profitability or risk management controls.

Factors that could negatively impact the rating include a material change in risk appetite, significant declines in earnings and profitability, material declines in capitalization and, for any subsidiary, material weakening of Penn Mutual’s capital support, RBC targets, or strategic or financial commitment.

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.

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.

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