Best’s News & Research Service - October 02, 2019 11:32 AM (EDT)
AM Best Comments on Credit Ratings of Blue Cross Life Insurance Company of Canada Following Alliance Agreement
- October 02, 2019 11:32 AM (EDT)
Oldwick //BestWire// - 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.
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.
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