A.M. Best Affirms Ratings of CIBC Reinsurance Company Limited

OLDWICK, N.J.--()--A.M. Best has affirmed the financial strength rating of A (Excellent) and the issuer credit rating of “a+” of CIBC Reinsurance Company Limited (CIBC Re) (Barbados). The outlook for both ratings is stable.

CIBC Re is a life reinsurance subsidiary that is ultimately owned by the Canadian Imperial Bank of Commerce (CIBC). CIBC Re principally reinsures credit insurance policies that have been underwritten by third-party life insurance carriers on consumer mortgages, loans and credit cards originated by CIBC’s Canadian branches. CIBC Re subsequently retrocedes these risks to several unaffiliated reinsurers. To a lesser extent, CIBC Re also participates in excess retrocession pools within the United States and Canada under a variety of treaties.

The rating affirmations reflect CIBC Re’s strong capitalization, favorable operating earnings and a conservative investment portfolio. The ratings factor in CIBC Re’s enterprise risk management framework, which is well integrated into CIBC, and the high credit quality and strong liquidity of CIBC Re’s investment portfolio that consists entirely of term bank deposits with a CIBC affiliate.

These positive rating factors are partially offset by CIBC Re’s dependence upon consumer loan originations for premium growth, which have a potential to decline if consumer loan originations in the Canadian market slow. Additionally, a decline in economic activity in Europe could impact CIBC Re’s ability to retrocede assumed risks to its European counterparties.

This press release relates to rating(s) 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 visit A.M. Best’s Ratings & Criteria Center.

A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

Copyright © 2015 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.

Contacts

A.M. Best Company
Anthony McSwieney, 908-439-2200, ext. 5715
Senior Financial Analyst
anthony.mcswieney@ambest.com
or
William Pargeans, 908-439-2200, ext. 5359
Assistant Vice President
william.pargeans@ambest.com
or
Christopher Sharkey, 908-439-2200, ext. 5159
Manager, Public Relations
christopher.sharkey@ambest.com
or
Jim Peavy, 908-439-2200, ext. 5644
Assistant Vice President, Public Relations
james.peavy@ambest.com

Contacts

A.M. Best Company
Anthony McSwieney, 908-439-2200, ext. 5715
Senior Financial Analyst
anthony.mcswieney@ambest.com
or
William Pargeans, 908-439-2200, ext. 5359
Assistant Vice President
william.pargeans@ambest.com
or
Christopher Sharkey, 908-439-2200, ext. 5159
Manager, Public Relations
christopher.sharkey@ambest.com
or
Jim Peavy, 908-439-2200, ext. 5644
Assistant Vice President, Public Relations
james.peavy@ambest.com