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Best’s News & Research Service - April 05, 2017 12:16 PM (EDT)

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

  • April 05, 2017 12:16 PM (EDT)
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Oldwick //BestWire// - A.M. Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a+” of CIBC Reinsurance Company Limited (CIBC Re) (Barbados). The outlook of these Credit Ratings (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 a portion of 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, strong return on equity 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 and investments with CIBC affiliates.

These positive rating factors are partially offset by CIBC Re’s dependence on consumer loan originations for premium growth, which have a potential to decline if consumer loan originations in the Canadian market slow.

This press release relates to Credit Ratings 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 see A.M. 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.

A.M. Best is the world’s oldest and most authoritative insurance rating and information source.

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