OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a+” of TD Reinsurance (Barbados) Inc. (TD Re) (Barbados). The outlook of these Credit Ratings (ratings) is stable.
TD Re is a life reinsurer that is ultimately owned by The Toronto-Dominion Bank (TD Bank). TD Re principally reinsures credit insurance policies underwritten by third-party life insurance carriers on consumer loans originated by TD Bank’s Canadian retail bank branches.
The rating affirmations reflect TD Re’s trends of strong profitability, solid capitalization, above-average return on equity and strong liquidity. Additionally, the ratings recognize the high credit quality of TD Re’s investment portfolio, which provides good liquidity with a short duration that adequately matches its liability profile.
These strengths are partially offset by a dependence on Canadian consumer loan originations for growth. While the overall operating fundamentals of TD Re remain strong, a decrease in consumer loan originations could impact TD Bank’s ability to reinsure credit insurance, thus impacting TD Re’s growth prospects.
This press release relates to Credit Ratings 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. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings.
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