(August 8 – 18:00 ET) – A.M. Best Co. has assigned an A (Excellent) financial strength rating to Co-operators Life Insurance Co.
In a statement, A.M Best said the rating reflects the Regina-based company’s consistently profitable operations, growth in group insurance and favorable capitalization. It also said that the insurer is faced challenges to improve profitability in its group insurance segment and to increase its individual life market share.
According to the rating service, the profitability of Co-operators Life has been driven primarily by its individual life products as well as consistent contributions from its credit union business. The company’s profitability has contributed to its favorable capitalization despite the presence of shareholder dividend payments.
A.M Best said that although the company has enjoyed significant growth in its group insurance business over recent years, it may be challenged to improve the profitability in this segment. However, it expects several management initiatives, including early intervention programs within its group health business and renewal rating actions, may position this segment for a return to profitability.
While acknowledging its success as a niche player, A.M. Best noted that Co-operators Life may be challenged to increase its market share given the industry consolidation occurring in the sector.
-IE Staff