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FOR IMMEDIATE RELEASE
OLDWICK - FEBRUARY 23, 2017 09:32 AM (EST)
A.M. Best has placed under review with developing implications the Financial Strength Rating (FSR) of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” of the Western Life Assurance Company (Western Life) (High River, AB, Canada). This rating action follows The Wawanesa Mutual Insurance Company’s (Wawanesa Mutual) announcement that its subsidiary, Trimont Financial Ltd., has agreed to purchase Western Financial Group and Western Life from Desjardins Financial Corporation, a Desjardins Group subsidiary, for a total transaction value of approximately $775 million.
The transaction includes Western’s primary business units: its brokerage network, Western Financial Group Insurance Solutions, Coast Capital Insurance Services and Western Life. This acquisition is subject to standard closing conditions, including regulatory approvals, and is expected to close in the third quarter of 2017. The acquisition is expected to strengthen Wawanesa Mutual’s insurance broker channel in Canada by ensuring that the Western Financial Group remains a trusted, familiar local broker in communities across western Canada. It is expected that Western Financial will continue to operate under the Western Financial Group name and all of the companies will continue their respective regular operations.
Western Life’s ratings will remain under review until the close of the transaction and until A.M. Best completes its discussions with the companies’ management teams concerning the company’s strategic path going forward.
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.
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