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.
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