OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best has removed from under review with developing implications and affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” of Western Life Assurance Company (WLAC) (headquartered in Winnipeg, Manitoba, Canada). The outlook assigned to these Credit Ratings (ratings) is stable.
On July 1, 2017, Trimont Financial Ltd., which is a subsidiary of The Wawanesa Mutual Insurance Company, closed a transaction which included the purchase of Western Financial Group and WLAC from Desjardins Financial Corporation Inc., a Desjardins Group subsidiary for about $775 million. WLAC is now a wholly owned subsidiary of Wawanesa Life Insurance Company.
The ratings reflect WLAC’s strategic value in diversifying the product profile and distribution network of Wawanesa Life Insurance Company, its strong risk-adjusted capitalization and its positive premium and earnings trends. Partially offsetting rating factors include the challenge of integrating WLAC into the Wawanesa Mutual enterprise, strong competition in the Canada life insurance market and the impact of the current low interest rate environment on WLAC’s operating performance.
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. For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.
A.M. Best is the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.
Copyright © 2017 by A.M. Best Rating Services, Inc. and/or its subsidiaries. ALL RIGHTS RESERVED.
