The ratings agency A.M. Best has upgraded its financial strength rating for Transamerica Life Canada (TLC) from “A-” to "A”, as well as its issuer credit rating to from “a-” to “a”. These ratings are no longer under review and have been assigned a stable outlook.
In a press release issued on August 4, the ratings agency said this new assessment reflects the fact that Wilton Re has completed its acquisition of the company from the Dutch insurer Aegon. A.M. Best notes that the $600 million (CDN) transaction was partially funded through cash contributions from Wilton Re's ultimate parent, the Canada Pension Plan Investment Board.
"The upgrade reflects the expectation that TLC will benefit from the support of the new parent as uncertainty around its future ownership has been resolved," says A. M. Best.
The ratings agency expects Transamerica will continue with its current strategy of marketing insurance products to the Canadian middle market, drawing on the support of its new parent company on an as-needed basis.