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FOR IMMEDIATE RELEASE
OLDWICK - MAY 18, 2017 10:02 AM (EDT)
A.M. Best has assigned a Long-Term Issue Credit Rating of “bbb+” to the CAD 200 million 5.15% non-cumulative first preferred Series T shares of Great-West Lifeco Inc. (Great-West Life) (Winnipeg, Manitoba). The outlook assigned to the Credit Rating (rating) is stable, and the existing ratings of Great-West Life and its subsidiaries are unaffected.
The proceeds from the bond offering will be utilized for general corporate purposes and to augment the corporation’s liquidity position. A.M. Best notes that Great-West Life’s adjusted financial leverage is expected to remain below 25%, which is within A.M. Best’s guidelines to support the assigned rating. Additionally, Great-West Life’s interest and fixed charge coverage ratios also are expected to remain within A.M. Best’s guidelines for its current rating level.
The rating reflects Great-West Life’s very strong market position in its core business lines, its highly diversified earnings profile and strong financial flexibility. Great-West Life has generated positive results from its diversified insurance, reinsurance and financial services operations. In first-quarter 2017, the company continued to be profitable, incurred assets under administration growth and reported solid premiums trends reflecting higher premiums and deposits across all segments.
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.