Financial Struggles Deepen for the Columbian Financial Group
The two life insurers of the Columbian Financial Group (CFG), Columbian Mutual Life Insurance Company (CML) and CML subsidiary Columbian Life Insurance Company (CLIC), experienced weak and deteriorating financial positions for many years, which was driven by poor operating performance. CLIC incurred continued operating losses that have led to a low and declining risk-based capital (RBC) ratio, which was below the company action level at year-end 2023. CML also incurred sizable operating losses in three of the last four years, while CLIC’s losses and reduced surplus position also contributed to CML’s lower capitalization in aggregate and on a relative basis, given CML’s ownership of CLIC.