AM Best Information Services




MAY 25, 2022 09:27 AM (EDT)

AM Best Affirms Credit Ratings of TD Reinsurance (Barbados) Inc.


CONTACTS:
 Kevin Varvaro
Financial Analyst
+1 908 439 2200, ext. 5487
kevin.varvaro@ambest.com

Edward Kohlberg
Director
+1 908 439 2200, ext. 5664
edward.kohlberg@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 25, 2022 09:27 AM (EDT)
AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a+” (Excellent) of TD Reinsurance (Barbados) Inc. (TD Re) (Barbados). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect TD Re’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.

TD Re is a life and general insurance reinsurer that ultimately is owned by The Toronto-Dominion Bank (TD Bank). TD Re principally reinsures credit insurance policies underwritten by third-party life insurance carriers on consumer loans originated by TD Bank’s Canadian retail branches. The company also has reinsured homeowners and private passenger auto insurance with a 25% quota share agreement with another TD Bank subsidiary since 2017. Despite implications from the COVID-19 pandemic, TD Re maintained its high return on equity from favorable underwriting results and a favorable risk-adjusted capital position through its fiscal year-end 2021. The company also continues to maintain multiple high quality investment portfolios that are managed to match the specific liability profiles of the business it supports.

These strengths are offset partially by a dependence on Canadian consumer loan originations for growth and the slow change in business mix over time toward general insurance. Due to the digitization of banking services, removing face-to-face transactions and the acceleration of this from the COVID-19 pandemic, creditor premiums have trended lower over the long term. Furthermore, while earnings have been favorable for the general insurance line of business to date, the homeowners and private passenger auto lines of business are considered riskier and more capital-intensive than creditor business.

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.


Related Companies

For information about each company, including the Best's Credit Reports, group members (where applicable) and news stories, click on the company name. An additional purchase may be required.

AMB# Company Name
056952 TD Reinsurance (Barbados) Inc.