OLDWICK, N.J.--(BUSINESS WIRE)--
A.M. Best has affirmed the financial strength rating of A+
(Superior) and the issuer credit ratings (ICR) of “aa” of The
Great-West Life Assurance Company (Winnipeg, Manitoba) and its
affiliates, London Life Insurance Company (London, Ontario), The
Canada Life Assurance Company (CLAC) (Toronto, Ontario), Great-West
Life & Annuity Insurance Company (GWL&A) (Greenwood Village, CO)
and Great-West Life & Annuity Insurance Company of New York
(White Plains, NY) (together referred to as the Great-West Life Group).
Concurrently, A.M. Best has affirmed the ICR of “a” and the existing
issue ratings of Great-West Lifeco Inc. (Lifeco) (Winnipeg,
Manitoba). The outlook for each rating is stable. (See link below for a
detailed listing of the companies and ratings.)
The rating affirmations reflect Great-West Life Group’s highly
diversified earnings profile by product and geography, strong market
position in its core business lines and solid regulatory capital levels.
Great-West Life Group maintains diversified insurance, reinsurance and
financial services operations, along with its strong enterprise risk
management capabilities, which have helped the company withstand
interest rate and equity market volatility. The organization has
consistently generated significant cash flows from operations and
historically has demonstrated its ability to manage its financial
leverage and interest coverage within A.M. Best’s expectations for its
current ratings. In addition, Lifeco maintains an excellent liquidity
posture supported by high-quality investments and credit facilities.
Moreover, A.M. Best recognizes Great-West Life Group’s consolidated
position as a market leader in the Canadian individual and group
insurance lines, with superior market positions in the wealth
accumulation and protection segments. The Canadian distribution systems
of Lifeco and its operating companies represent the largest in Canada
and serve as a significant competitive advantage, while its conservative
pricing discipline and low expense structure enables it to generate
favorable operating results. The U.S. operation continues to produce
stable earnings contributions, and has grown organically and through
recent acquisitions. The European business segments provide further
diversification and also have grown significantly through acquisitions
in Ireland.
The ratings also reflect the earnings volatility and challenges
associated with the current low interest rate environment and volatile
equity markets, although the group’s life insurance entities have not
experienced the same level of earnings sensitivity from equity market
volatility as its competitors. Also noted is Lifeco’s large amount of
goodwill and intangibles due to strategic acquisitions. In addition,
A.M. Best expects that the group will continue to face challenges
associated with growth in its core U.S. business segments due to the
highly competitive environment. As the global economy and regulatory
environment evolves, A.M. Best expects any potential growth strategies
will require a more stringent focus and a longer time horizon to record
meaningful growth over the medium to longer term.
For a complete listing of Great-West Lifeco Inc. and its subsidiaries'
financial strength, issuer credit and issue ratings, please visit Great-West
Lifeco Inc.
This press release relates to rating(s) that have been published on
A.M. Best’s website. For all rating information relating to the
release and pertinent disclosures, including details of the office
responsible for issuing each of the individual ratings referenced in
this release, please see A.M. Best’s Recent
Rating Activity web page.
A.M. Best is the world’s oldest and most authoritative insurance
rating and information source. For more information, visit www.ambest.com.
Copyright © 2016 by A.M. Best Rating Services, Inc. ALL RIGHTS
RESERVED.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160722005426/en/