A.M. Best Co. has affirmed the financial strength rating of of Great-West Life Assurance
Company and its wholly owned core subsidiary, London Life Insurance Company, as A++ (Superior).

It also affirmed the financial strength rating of of Great-West Life & Annuity Insurance Co. as A++ (Superior). Additionally, Great-West Life group’s existing debt and HMO ratings have been affirmed. The outlook for all the ratings is stable.

These ratings, says the rating company, are based on the balance sheet strength, superior financial performance and diversified operating profile of GWL and London Life. The ratings further consider the financial strength and excellent operating performance of the sister company, GWL&A.

Both GWL and GWL&A are core subsidiaries of Great-West Lifeco, Inc., an intermediate holding company ultimately controlled by the Power Corporation of Canada. “These ratings reflect sound capitalization, strong debt service capabilities, very strong market positions in core business lines, superior and highly diversified sources of earnings and effective asset-liability management practices in these various companies,” says the rating company. “These strengths are tempered by challenges associated with achieving profitable growth in the highly competitive and consolidating Canadian marketplace, along with competitive pressures in the U.S. employee benefits arena as evidenced by GWL&A’s reduced sales.”

With prominent positions in core product lines in Canada and the United States, the Great-West Life group enjoys both geographic and operational diversification. These companies enjoy favorable cost structures and excellent administrative capabilities, which represent competitive advantages in their respective markets.