OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has commented that the Credit Ratings (ratings) of Blue Cross Life Insurance Company of Canada (Blue Cross Life) (headquartered in Moncton, New Brunswick, Canada) remain unchanged following the recent announcement that Blue Cross Life has formed an alliance with Pacific Blue Cross, which will become effective Jan. 2, 2020. The impact to capital and earnings is expected to be modest in the near term and the transaction is subject to customary regulatory approvals.
Pacific Blue Cross, headquartered in Burnaby, British Columbia, is the province’s No. 1 health benefits provider, offering health, dental, life and disability insurance coverage to a third of British Columbians. Pacific Blue Cross will own one-sixth of Blue Cross Life, and it will transfer a substantial portion of its life and disability inforce business as consideration and operate under the same model as the existing investors of Blue Cross Life. The business model of Blue Cross Life remains unchanged as a manufacturer of life and accident and sickness insurance products, which are distributed by its owners.
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