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AM Best Affirms Credit Ratings of Great-West Lifeco Inc. and Its SubsidiariesAM Best has affirmed the Financial Strength Rating (FSR) of A+ (Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of "aa" of The Canada Life Assurance Company (Winnipeg, Manitoba) and its affiliates. Concurrently, AM Best has affirmed the Long-Term ICR of "a" and the Long-Term Issue Credit Ratings (Long-Term IR) of Great-West Lifeco Inc. (Lifeco) (Winnipeg, Manitoba). The outlook of these Credit Ratings (ratings) is stable. (See below for a detailed listing of the affiliates and Long-Term IRs.) The ratings of Lifeco's operating companies reflect their balance sheet strength, which AM Best categorizes as strongest, as well as their strong operating performance, very favorable business profile and appropriate enterprise risk management. The group's balance sheet has remained assessed as strongest through the early stage of the financial crisis. Capitalization remains strongest, as measured by Best's Capital Adequacy Ratio (BCAR), noting growth in absolute levels of capital due to favorable earnings. The Canada Life Assurance Company recently completed its new branding strategy in 2020 under the brand name, Canada Life, which included organizational alignments to meet this end. With the recently announced acquisition of Massachusetts Mutual Life Insurance Company's retirement services platform, the Empower Brand will be the second-largest retirement services provider in the United States, with significant accretion benefits expected to begin in 2021. The company expects to benefit from additional partnership opportunities resulting from this transaction beyond wealth management to include digital insurance products offered to new customers from this and prior acquisitions. The group has grown its par life business during a heightened competitive market and benefits from profitable operations in all lines of business, excluding one-time items, in all regions. Favorable operating results in core lines of businesses are enhanced by positive flows into their wealth management segment through fee income from higher assets under management, which is expected to grow materially in the near term from acquisition synergies. AM Best believes that the continued low interest rate environment and the competitive market in the United States and Canada, particularly, will continue to create unusually high levels of uncertainty in future growth and profitability expectations. The FSR of A+ (Superior) and the Long-Term ICRs of "aa" have been affirmed with stable outlooks for The Canada Life Assurance Company and its affiliates:
Great-West Lifeco Inc.-
The following Long-Term IRs have been affirmed with stable outlooks:
Great-West Lifeco Inc.-
Great-West Lifeco Finance (Delaware) LP-
Great-West Lifeco Finance 2018, L.P.-
The Canada Life Assurance Company-
Canada Life Capital Trust-
The following Long-Term IRs have been assigned with stable outlooks:
Great-West Lifeco U.S. Finance 2020, LP-
Empower Finance 2020, LP
The following indicative Long-Term IRs on securities available under shelf registration have been affirmed with stable outlooks:
Great-West Lifeco, Inc.-
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 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 analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com. Copyright © 2020 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
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