Senkler Explains Securian's Recession Resiliency to Credit Union CEOs

ST. PAUL, Minn., April 15 /PRNewswire/ -- Mutual governance, a sound risk management plan, and high-quality investments helped Securian Financial Group, one of the nation's largest providers of products and services to credit unions, come through the Great Recession in strong financial shape.

Bob Senkler, Securian chairman and CEO, addressed an audience of credit union leaders at the NAFCU Chief Executive Officers Conference in Savannah, GA April 15. He described several factors that helped Securian weather the financial storm that severely damaged or destroyed many of the nation's large and well known financial services companies.

"Not being traded on Wall Street and having private governance certainly won the day," said Senkler. Securian has a mutual holding company governance structure, meaning it is owned by its policyholders. "On balance, we had higher capitalization, a lower risk profile, lower leverage, and mutuals continued to have a ratings advantage over publicly-held insurers which is very important in our business."

Senkler says the quality of Securian's investments, the diversification of its businesses, and a carefully-constructed risk management plan that worked as planned also contributed to the company's strength coming out of the recession.

Securian was not unscathed, Senkler said. The company had about $650 million in net unrealized losses going into 2009. Nonetheless, the company held onto its carefully-purchased, high-quality investments and watched their value rebound. In calendar 2009, Securian experienced a 29 percent increase in GAAP equity primarily due to the recovery of those unrealized investment losses and then some. Through the first quarter of 2010, the company has seen a $1 billion increase in the value of its investment portfolio.

Going forward, Senkler says there are many opportunities for growth among credit unions that are financially strong, such as adjusting pricing, hiring great talent, and gaining market share.

"Credit unions should be excited for this time of new beginnings," he told the credit union CEOs. "Given the relationships you have with your members, credit unions are uniquely situated to gain market share while continuing to serve their members at an exceptionally high level."

Since 1880, Securian Financial Group and its affiliates have provided financial security for individuals and businesses in the form of insurance, investments and retirement plans. Now one of the nation's largest financial services providers, it is the holding company parent of a group of companies that include Minnesota Life Insurance Company, Advantus Capital Management, Allied Solutions, Capital Financial Group, Cherokee National Life Insurance Company, CNL/Insurance America, Personal Finance Company, Securian Financial Services, Inc., Securian Casualty Company, Securian Life Insurance Company and Securian Trust Company.

SOURCE Securian Financial Group