A Financial Check — Ask the Expert
Questions for Randy Boushek, senior vice president and chief financial officer

Q: How would you characterize the overall financial health of Thrivent Financial for Lutherans?

A: Thrivent Financial is strong and financially secure for its members. I like to look at our overall finances in relation to checking and savings accounts. The savings account, which is our balance sheet, is extremely strong. We have one of the strongest capital ratios in the insurance industry. Our income statement, which is like our checking account, is improving, but is in need of further improvement. We’ve made progress in increasing its health through reducing expenses and other things.

Q: What is the status of the organization’s underlying portfolio of investments?

A: Right now our assets are well-matched to our liabilities—the contracts we support for you. How we match our assets to our liabilities is one of our most important considerations. Our investments need to be there to pay your claims in the future, so how well we manage those investments is of critical importance. Plus, we have strong risk management capabilities to ensure the money will be there when it is needed. Our organization has a long history of careful and prudent management of assets and intends to continue to do so.

Q: Among leading insurance ratings agencies, how does Thrivent Financial measure up?

A: Thrivent Financial has some of the strongest ratings in the industry. A.M. Best reaffirmed our A++ (superior) rating in 2004, the highest of its 15 ratings. Moody’s Investors Services has given us a rating of Aa2 (excellent), the third-highest of its 21 ratings.*

Q: Thrivent Financial has placed a great deal of emphasis on improving organizational efficiencies. What have been the results?

A: One way to measure efficiency is staffing levels, and over the past three years we’ve worked hard but compassionately to reduce staffing in our corporate and operations centers by almost 30 percent. We’ve also launched efforts to streamline transactions, speed up the development of new products, improve service, reduce waste and revamp communications. Thanks to hard work from a great number of people, we’re beginning to harvest the benefits of these efforts, but just as important, we’re embedding a continuous-improvement mindset in our culture. To successfully compete and grow as a business, and fulfill our stewardship responsibility to our members, we must continually strive to improve efficiency.

Q: To what extent have external forces—changes in interest rates or market performance—affected the financial position of Thrivent Financial in the past 12 to 18 months?

A: In general, when the stock market is up, that’s good for Thrivent Financial; when the market is down, it hurts our financial performance. Low interest rates, as we have experienced over the past several years, create unique risk-management challenges for us, as well as for our peers across the industry. Low interest rates restrict what we can credit to our members and affect our overall returns. We’re constantly working to manage within this environment to provide the best possible return or outcome on the dividend scale for our members.

Q: Thrivent Financial also has launched efforts to improve its stewardship of members’ money by minimizing expenses. Has this been successful?

A: Definitely. In 2005, we will deliver on our commitment to reduce corporate operating expenses by $100 million. This has been a challenging effort, but one that our employees have worked hard to deliver. And it’s one that I think we can take great pride in as an organization. As a membership organization, our charge is to deliver products and services at the lowest possible cost to our members. The outcome of greater efficiency is better products, better service and better pricing for our members.

Q: From a financial standpoint, what’s your forecast for Thrivent Financial over the next one to three years?

A: I am very optimistic. We’ve done the right things to position the organization for future success, which in turn can enable us to expand our fraternal outreach to our members, their congregations and communities. That part of who we are is extremely important to me. I get excited about improving our financial performance in order to have a greater impact through our fraternal outreach, and to ensure the financial security of our products at the best possible price.

Q: Why do you choose to work for Thrivent Financial?

A: It’s important for me to work for a successful financial services organization whose Lutheran identity and mission align so closely with my faith and my values. I can’t imagine another place where I can have the opportunity to combine those in such a fulfilling way.

Q: What do you enjoy doing when you’re not working?

A: Most of my time away from work is involved in volunteer music ministry with my wife at our church. She directs the music ministry, while I serve as worship leader and direct the senior choir. We also enjoy spending time at our lake home. We have two grown children with whom I enjoy spending time. As they were growing up, I spent many years as a soccer and basketball coach. I enjoy all sorts of leisure sports.

Randy Boushek
Joined Thrivent Financial 1981

Education
B.A. in mathematics, Concordia College; Minnesota Management Academy at the Carlson School of Management, University of Minnesota

Professional Designations
Fellow of Society of Actuaries and member of American Academy of Actuaries