New private letter rule brings improved risk assessment

file folders with regulations written on one of them

In a long-anticipated move, the National Association of Insurance Commissioners (NAIC) has enacted a new set of rules changing how risk rating rationales are created and reported for private credit investments called private placements. Private placements are typically corporate bonds that are not required to be registered with the Securities and Exchange Commission (SEC).

Securian AM fully supports the NAIC rule changes. More transparency into metrics and methodologies will reinforce the already rigorous processes our private credit analysts and portfolio managers follow. Yes, it’s an added expense, and it means additional work for underwriters, but at least in our case those costs are not passed along to our investors. We applaud processes that strengthen our already robust due diligence.

Takeaways from the NAIC rules change

  • No impact on current portfolios
  • Investors don’t have to do anything—Securian AM handles the new paperwork requirements, including retroactive filings
  • Greater scrutiny on ratings agencies strengthens due diligence
  • Better risk assessment leads to better decisions
Securian Asset Management
Securian Asset Management

Our asset management business has been built with a risk and liability management focus, coming from our history investing for the General Account of our parent, Securian Financial Group. Since 1880 we’ve been committed to providing investment solutions enabling our clients to achieve their goals with confidence.
We are staying true to our purpose, and our values, while being innovative and nimble to prepare our clients to meet their future from a position of strength. As a financially stable, non-public company we focus on the long-term and execute consistently for our clients.

John Messing
Vice President, Institutional Solutions
john.messing@securianam.com
(651) 665-5097

Amy Theuninck
Managing Director, Institutional Solutions & Head of Consultant Relations
amy.theuninck@securianam.com
(651) 665-3879

securianam.com

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400 Robert St. N.
St Paul, MN 55101

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