ST. PAUL, Minn.--(BUSINESS WIRE)--Securian Financial increased revenue and earnings significantly in 2023 while furthering its growth plans and again being there for customers and the community, the insurance and retirement solutions provider announced at its recent annual employee meeting.
“In 2023, we generated strong financial results and took bold steps to position the company for continued success in our chosen markets,” said Chris Hilger, Securian Financial’s chairman, president and CEO. “At the same time, we fulfilled our purpose of building secure tomorrows by providing $5.4 billion in benefits to policyholders1 and making substantial investments in the community.”
Key financial metrics
- Insurance sales—including group life insurance, individual life insurance and insurance products sold through financial institutions and affinity organizations—were $666 million, up nearly 6% over 2022. Sales of retirement products, including individual annuities and pension risk transfers, were just under $2 billion, growing nearly 7% year-over-year, with pension risk transfer sales breaking a company record.
- GAAP revenue was more than $8 billion2, an increase of nearly 31%, reflecting strong overall sales, excellent retention in all businesses and impacts from recent business portfolio moves. Operating revenue was nearly $7.4 billion, increasing more than 12%. Operating revenue is Securian Financial's primary revenue metric and reflects ongoing growth in the company's core businesses while excluding certain non-recurring revenue.
- GAAP operating earnings were $310 million, up 27% compared to 2022, due to the business portfolio move proceeds, favorable mortality and strong subsidiary earnings. Net income was also strong at $227 million.
- Insurance in force—the financial protection Securian Financial provides to its customers—was over $1.6 trillion, rising more than 7%.
- Capital remained strong at $3.3 billion, in alignment with company targets.
Company highlights
- Remained among the most highly rated insurance companies in the U.S.3
- Closed the purchase and executed the integration of Sun Life’s Canadian creditor and affinity insurance businesses into Securian Canada’s operations, delivering greater scale and capabilities in the North American financial institution and association markets.
- Divested the company’s retail wealth business to Cetera Financial Group while staying committed to the market through a strategic relationship with Cetera for the distribution of Securian Financial’s individual life and annuity products.
- Hit key milestones on other business portfolio moves—including the transition of Securian Financial’s 401(k) recordkeeping business to The Standard—allowing the company to increase its strategic focus and accelerate growth in priority markets.
Community initiatives
Contributions to the community from the Securian Financial Foundation, in-kind donations, employee volunteerism and other cash gifts totaled $10.8 million. Highlights included a $1 million donation to the Minnesota State Housing Tax Credit Contribution Program, which funds affordable housing projects throughout Minnesota, and being one of the first corporate sponsors for the GroundBreak Coalition, a partnership of more than 40 corporate, civic and philanthropic leaders committed to building Black wealth in the Twin Cities. Securian Financial employees volunteered more than 24,000 hours in the community on activities ranging from preparing nourishing meals for critically ill Minnesotans to service on more than 130 nonprofit boards.
Profit sharing
For the 50th consecutive year, Securian Financial is making a profit-sharing contribution to eligible employees’ retirement accounts. This year’s company contribution is 6.4% of annual salary. Securian Financial also maintains a fully funded, 100% employer-paid pension plan, with employees vested in the pension after five years of service.
Per its usual annual cycle, Securian Financial expects to release its 2023 Annual Report—with audited GAAP financial information—in April.
