Company Website:
http://www.ambest.com
OLDWICK, N.J. -- (Business Wire)
A.M. Best has assigned a Long-Term Issue Credit Rating (Long-Term
IR) of “a” to the recently issued CAD 400 million 3.3% subordinated
debentures due Sept. 15, 2028, of Industrial Alliance Insurance and
Financial Services Inc. (IA) (Quebec City, Quebec) [TSX: IAG]. The
outlook assigned to this Credit Rating (rating) is stable, which is
consistent with the outlook for the existing ratings of IA and its core
operating insurance subsidiaries. (For further details, please see A.M.
Best’s press
release dated Feb. 24, 2016.)
The proceeds from the debt offering will be added to IA's capital base
and be utilized for general corporate purposes, including, subject to
the prior approval of the Autorité des marchés financiers, the
redemption of IA's outstanding CAD 250 million 4.75% Subordinated
Debentures due Dec. 21, 2021. IA intends to redeem the subordinated
debentures on Dec. 14, 2016. A.M. Best notes that IA's overall financial
leverage is expected to remain below 30%, while interest coverage is
expected to remain above five times. Both measures are within A.M.
Best’s guidelines for IA’s current rating level.
The rating recognizes IA’s solid absolute and risk-adjusted
capitalizations, consistent profitability, product diversification and
growth in assets under management. At 2Q 2016, IA reported solid
operating earnings, while maintaining adequate risk-adjusted capital
ratios. Premium growth for the period was led by strong retail insurance
sales in Canada and the United States. Additionally, the company saw
improvement in their new business strain ratio. A.M. Best will continue
to monitor the impact of the current macroeconomic environment,
including the low interest rate environment on IA’s earnings and
risk-adjusted capital.
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. For more information, visit www.ambest.com.
Copyright © 2016 by A.M. Best Rating Services, Inc. and/or its
subsidiaries. ALL RIGHTS RESERVED.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160916005767/en/
Contacts:
A.M. Best
Edward Kohlberg
Managing Senior
Financial Analyst
+1 908 439 2200, ext. 5664
edward.kohlberg@ambest.com
or
Thomas
Rosendale
Assistant Vice President
+1 908 439
2200, ext. 5201
thomas.rosendale@ambest.com
or
Christopher
Sharkey
Manager, Public Relations
+1 908 439
2200, ext. 5159
christopher.sharkey@ambest.com
or
Jim
Peavy
Assistant Vice President, Public Relations
+1
908 439 2200, ext. 5644
james.peavy@ambest.com
Source: A.M. Best
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