A.M. Best Co. has affirmed the financial strength rating of A+ (Superior) for the Canada Life Assurance Co. and its subsidiaries.

Additionally, A.M. Best has assigned an initial A+ (Superior) rating to Canada Life International Re Ltd., of Dublin, Ireland.

According to A.M. Best, the ratings are based upon the consolidated financial strength and operating performance of Canada Life and its subsidiaries. It says ratings reflect the excellent marketing position of Canada Life’s product segments, business units, its strong capitalization and geographically diverse product lines provided by operations in Canada, the United States, the United Kingdom and Ireland.

The ratings service says Canada Life’s market position has benefited from a number of acquisitions in recent years. It draws particular attention to the1999 acquisition of the majority of Crown Life Insurance Co.

A.M. Best notes that Canada Life’s reinsurance operations significantly increased its direct life reinsurance business in 2000, including the creation of a new subsidiary, Canada Life International Re Ltd., to pursue additional reinsurance opportunities.

Offsetting these strengths, observes the ratings service are Canada Life’s need to improve the profitability of operations in the U.K., the challenge to continue its marketing momentum in the U.S. protection business and sustain its market positions in Canada.

Improving its financial performance in the U.K. could prove difficult, as Canada Life must contend with larger competitors. Nevertheless, A.M. Best believes that Canada Life’s solid U.K. management team and distribution relationship with independent financial advisors will help it overcome these challenges.

A.M. Best has also affirmed the A+ (Superior) ratings of its strategic subsidiaries, Canada Life Insurance Co. of America, Lansing, Michigan and Canada Life Insurance Company of New York, Ardsley, New York.