(May 1 – 17:20 ET) – A.M. Best Co. has downgraded, upgraded or affirmed the qualified ratings for 10 Canadian life insurers.
Best’s Qualified Ratings are based on the quantitative analysis of three key operating areas that comprise A.M. Best’s rating methodology: balance sheet strength, operating performance and market profile.
The ratings use 15 tests in these three major analytical areas. Balance sheet strength measures are assigned the greatest significance (55%), followed by operating performance (30%) and market profile (15%). This process is similar to, but less rigorous than, the qualitative portion of A.M. Best’s interactive rating process, which involves the submission of supplemental financial information and ongoing interaction with management.
Companies assigned ratings of Aq to B+q have strong to adequate capitalization relative to the business they underwrite, satisfactory operating results and good business and/or geographic diversification (market profile). Companies assigned vulnerable ratings of Bq to Dq have low or inadequate capitalization, a history of adverse claims development, poor operating performance and/or exhibit other market vulnerabilities.
Two Canadian life insurance companies had ratings downgraded: GAN VIE Compagnie Francaise d’Assur. Sur la Vie to B q from B+ q; and Western Life Assurance Company to B q from B+ q.
The rating for Scotia Life Insurance Company was upgraded to B++ q from B+ q.
The following Canadian life insurance companies have had their ratings affirmed:
- Aegis Insurance Corporation–B+ q
- CIGNA Life Insurance Company of Canada–B+ q
- CNA Life Insurance Company of Canada–B+ q
- CUMIS Life Insurance Company–B++ q
- Equitable Life Insurance Company of Canada (The)–B++ q
- Primerica Life Insurance Company of Canada–B++ q, and
- Toronto Mutual Life Insurance Company–B+ q
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