AM Best Information Services




MAY 05, 2022 01:44 PM (EDT)

AM Best Affirms Credit Ratings of Industrial Alliance Insurance and Financial Services Inc. and Its Subsidiaries


CONTACTS:
 Bruno Caron
Associate Director
+1 908 439 2200, ext. 5144
bruno.caron@ambest.com

Anthony McSwieney
Senior Financial Analyst
+1 908 439 2200, ext. 5715
anthony.mcswieney@ambest.com

Michael Buckley
Financial Analyst
+1 908 439 2200, ext. 5658
michael.buckley@ambest.com

Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159
christopher.sharkey@ambest.com

Jeff Mango
Managing Director, Strategy & Communications
+1 908 439 2200, ext. 5204
jeffrey.mango@ambest.com

FOR IMMEDIATE RELEASE

OLDWICK - MAY 05, 2022 01:44 PM (EDT)
AM Best has affirmed the Financial Strength Rating (FSR) of A+ (Superior) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “aa-” (Superior) of Industrial Alliance Insurance and Financial Services Inc. (IA) (Quebec). Concurrently, AM Best has affirmed the Long-Term Issue Credit Ratings (Long-Term IRs) of IA. Additionally, AM Best has affirmed the FSR of A (Excellent) and the Long-Term ICRs of “a” (Excellent) of IA’s U.S. life insurance entities within the IA American Life Group. (See below for a detailed listing of companies.) AM Best also has affirmed the FSR of A (Excellent) and the Long-Term ICR of “a+” (Excellent) of Industrial Alliance Pacific General Insurance Corporation (IAPG) (headquartered in Vancouver, Canada). In addition, AM Best has affirmed the FSR of A (Excellent) and the Long-Term ICR of “a” (Excellent) of Dealers Assurance Company (DAC) (Columbus, OH). The outlook of these Credit Ratings (ratings) is stable.

The ratings of IA reflect its balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, favorable business profile and appropriate enterprise risk management (ERM).

IA’s Canada operations continue to have a favorable capital position with fairly steady risk-adjusted capitalization, supported by retained earnings and long-term investment repositioning to reduce risk, but offset partially by dividends. The company’s financial leverage remains within tolerances. Resilient core trends support IA’s strong operating performance, which is driven by favorable profitability and premiums growth within individual insurance, individual wealth management and group savings insurance. The ratings also recognize IA’s diversified business profile and continued growth organically and through acquisitions. IA’s ERM practices reflect a developed risk framework and formalized risk appetite, as well as its focus on strong risk governance throughout the organization.

The ratings of IA American Life Group reflect its balance sheet strength, which AM Best assesses as very strong, as well as its marginal operating performance, neutral business profile and appropriate ERM.

The ratings also recognize the continued support it has received from IA through capital contributions and synergies from home office management of its actuarial reserves and investment portfolio. AM Best views the IA American Life Group’s core focus on individual life insurance favorably in the United States, with support from its parent that included another $40 million contribution in 2021, following similar contribution in 2020.

The ratings of DAC reflect its balance sheet strength, which AM Best assesses as strong, as well as its strong operating performance, neutral business profile and appropriate ERM.

The ratings of IAPG reflect its balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate ERM. The ratings of DAC and IAPG reflect lift from IAF, which recognizes their contribution to the group’s overall strategy.

The FSR of A (Excellent) and the Long-Term ICRs of “a” (Excellent) have been affirmed with stable outlooks for the following entities of the IA American Life Group:


  • IA American Life Insurance Company

  • American-Amicable Life Insurance Company of Texas

  • Pioneer Security Life Insurance Company

  • Pioneer American Insurance Company

  • Occidental Life Insurance Company of North Carolina

The following Long-Term IRs have been affirmed with stable outlooks:

Industrial Alliance Insurance and Financial Services Inc.—

— “a” (Excellent) on CAD 400 million 3.30% subordinated debentures, due 2028

— “a-” (Excellent) on CAD 125 million 4.60% non-cumulative perpetual preferred shares, Series B

— “a-” (Excellent) on CAD 250 million 4.30% non-cumulative perpetual preferred shares, Series G

— “a-” (Excellent) on CAD 150 million 4.80% non-cumulative preferred shares, Series I due 2023

The following indicative Long-Term IRs on securities available under the shelf registration have been

affirmed with stable outlooks:

Industrial Alliance Insurance and Financial Services Inc.-

— “a+” (Excellent) on senior unsecured debt

— “a” (Excellent) on subordinated debt

— “a-” (Excellent) on preferred shares

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 use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

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.


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