AM Best Withdraws Credit Ratings of The Empire Life Insurance Company

OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a” (Excellent) of The Empire Life Insurance Company (Empire Life) (Kingston, Ontario, Canada). Concurrently, AM Best has affirmed the Long-Term Issue Credit Ratings (Long-Term IR) of Empire Life. The outlook of these Credit Ratings (ratings) is stable. (See below for details of the Long-Term IRs.) Empire Life is a subsidiary of E-L Financial Corporation Limited (E-L Financial), which operates as a publicly traded Canadian investment and insurance holding company. Concurrently, AM Best has withdrawn these ratings as the company has requested to no longer participate in AM Best’s interactive rating process.

The ratings reflect Empire Life’s balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management.

Empire Life maintains the strongest level of risk-adjusted capital, as measured by Best’s Capital Adequacy Model (BCAR), which supports its business and investment risks despite its elevated exposure to equity market risk. Risk-adjusted capitalization is enhanced by the high credit quality of its investment portfolio, and steady increases in aggregate capital levels due to favorable earnings and debt issuances. Empire Life’s capitalization has supported growth while maintaining levels that support its stressed capital targets. In addition, operating results have been consistently positive, although earnings have fluctuated from year to year. AM Best expects earnings to remain positive over the near to medium term with some expected fluctuations due primarily to the impact of equity market and interest rate volatility. The company continues to benefit from a diversified revenue stream, which includes the wealth management and individual insurance segments, along with continued solid results from the employee benefits segment, despite its relatively flat top-line growth.

The following Long-Term IRs of Empire Life have been affirmed with a stable outlook. Concurrently, AM Best has withdrawn the Long-Term IR’s at the company’s request.

-- “bbb+” (Good) on CAD 200 million 3.664% fixed/floating rate subordinated debentures, due March 15, 2028
-- “bbb+” (Good) on CAD 200 million 3.383% fixed/floating rate subordinated debentures, due Dec. 16, 2026

This press release relates to Credit Ratings that have been published on AM 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 AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

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