Press Release - DECEMBER 06, 2019

AM Best Comments on Credit Ratings of Blue Cross Life Insurance Company of Canada Following Canassurance Agreement

 Frank Walko, CPA, FLMI
Financial Analyst
+1 908 439 2200, ext. 5072

Rosemarie Mirabella
+1 908 439 2200, ext. 5892

Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159

Jim Peavy
Director, Public Relations
+1 908 439 2200, ext. 5644


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 its announcement of an alliance with the Canassurance Hospital Service Association (Canassurance), which will become effective Jan. 2, 2020. This transaction is subject to customary regulatory approvals and AM Best expects the near-term impact on earnings and capital to be modest.

Canassurance, headquartered in Montreal, Quebec, markets individual health and travel insurance in the provinces of Quebec and Ontario. Canassurrance will contribute capital to Blue Cross Life with the net effect of increasing risk-adjusted capitalization. Once the transaction is complete, Canassurance will own approximately a 14% stake in Blue Cross Life, and will transition its existing block of life and disability lines of business within the next two years.

The transaction allows Blue Cross Life to expand its products for individual life and disability into the Ontario and Quebec markets, in addition to British Columbia from an alliance formed with Pacific Blue Cross earlier this year. While the alliance with Canassurance gives Blue Cross Life a truly national footprint, AM Best notes Blue Cross Life will continue to be a niche provider of life and disability benefits in Canada. 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.

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 Understanding 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 provider specializing in the insurance industry. The company does business in more than 100 countries. Headquartered in Oldwick, NJ, AM Best has offices in cities around the world, including London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.

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