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 BMO Reinsurance Limited (BMO Re) (Barbados). The outlook of these Credit Ratings (ratings) is stable.
BMO Re is an indirect wholly owned subsidiary of Bank of Montreal (BMO) and is a reinsurer of life, property/casualty and disability risks. The ratings of BMO Re reflect its stable net income trends, strong return on equity and strong liquidity. In addition, BMO Re continues to maintain strong risk-adjusted capitalization levels, as well as low levels of credit risk within its investment portfolio, which is primarily invested in highly rated sovereigns, supranationals and corporate bonds.
While recognizing the strength of the relationship with BMO, A.M. Best notes that volatility in Canada’s economic conditions could impact the creditor life insurance market and BMO Re’s ability to grow premiums. Also, BMO Re continues to have exposure to potential earnings volatility from its assumed property/casualty risk; however, A.M. Best notes that this risk has a lesser degree of volatility compared with previous years.
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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