A.M. Best Affirms Financial Strength and Debt Ratings of Sun Life.Business Editors OLDWICK, N.J.--(BUSINESS WIRE)--Sept. 4, 2003 A.M. Best Co. has affirmed af·firm v. af·firmed, af·firm·ing, af·firms v.tr. 1. To declare positively or firmly; maintain to be true. 2. To support or uphold the validity of; confirm. v.intr. the financial strength ratings of A++ (Superior) of Sun Life Assurance Company of Canada (Sun Life) (Toronto) and its core subsidiaries, Sun Life Assurance Company of Canada (U.S.), (Wilmington, DE) and Sun Life Insurance and Annuity Company of New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of . Concurrently, A.M. Best has affirmed all of Sun Life's existing debt ratings. A.M. Best has also affirmed the financial strength rating of A+ (Superior) of Keyport Life Insurance Company (Keyport) (Lincoln, RI). All rating outlooks have been changed to negative from stable. The ratings reflect Sun Life's diversified diversified (di·verˑ·s and profitable operations, solid capitalization capitalization n. 1) the act of counting anticipated earnings and expenses as capital assets (property, equipment, fixtures) for accounting purposes. 2) the amount of anticipated net earnings which hypothetically can be used for conversion into capital assets. and very strong market position in Canada. The company has strong debt servicing capabilities underpinned by its favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. liquidity posture, high quality investment portfolio and sustainable earnings. Moreover, Sun Life's earnings are supported by its diverse operations, which are anchored by its very strong franchise in the Canadian market and complemented by its prominent position in the U.S. fixed annuity Fixed Annuity An insurance contract in which the insurance company makes fixed dollar payments to the annuitant for the term of the contract, usually until the annuitant dies. The insurance company guarantees both earnings and principal. business. This provides Sun Life with a good niche position in the high-end individual life arena and a top ten position in the U.S. mutual funds marketplace through MFS Investment Management MFS Investment Management, formerly Massachusetts Financial Services, is a Boston, Massachusetts-based financial services firm. In its publicity, MFS claims to have invented the mutual fund. The current chair of the company is Robert Pozen. . Sun Life is also well-positioned for significant growth in Asia. A.M. Best expects Sun Life to maintain its significant market presence in Canada and the United States The United States and Canada share a unique legal relationship. U.S. law looks northward with a mixture of optimism and cooperation, viewing Canada as an integral part of U.S. economic and environmental policy. due mainly to its extensive distribution channels, system capabilities, emphasis on customer service and competitive and diverse product line. These strengths are tempered by the highly competitive and consolidating nature of the Canadian market, which A.M. Best believes will make it increasingly difficult for Sun Life to grow market share and the challenges associated with generating higher returns that are currently below A.M. Best's expectations. Earnings have been pressured recently by spread compression in the fixed annuity business at Keyport Life, exacerbated by weak economic conditions and volatility in the equity markets, thus reducing fee income from its asset management businesses. Furthermore, should Sun Life pursue acquisitions, its financial leverage may increase beyond A.M. Best's expectations for the current rating level. Accordingly, the rating outlook is negative. For a comprehensive list of Sun Life's financial strength and debt ratings, please visit www.ambest.com/press/090404sunlife.pdf. A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. For more information, visit A.M. Best's Web site at www.ambest.com. |
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion