A.M. Best Affirms Rating of RBC Life Insurance; Removes From Under Review.Business Editors OLDWICK, N.J.--(BUSINESS WIRE)--May 5, 2004 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 rating of A (Excellent) of RBC RBC red blood cell. RBC or rbc abbr. red blood cell RBC, n See red blood cell count. RBC red blood cells; red blood (cell) count (see blood count). Life Insurance Company (RBC Life) (Mississauga, Ontario For the First Nation, see . Mississauga (pronounced: [ˌmɪsɪˈsɑgə] listen ). The rating has been removed from under review with negative implications and assigned a stable outlook. This rating action follows the completion of RBC Life's acquisition of the Canadian branch operations of Provident prov·i·dent adj. 1. Providing for future needs or events. 2. Frugal; economical. [Middle English, from Latin pr Life and Accident Insurance Company (Provident) (Ontario) and the review of the organization's 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 operating plans going forward. A.M. Best recognizes the strategic merit of this transaction, providing RBC Life with portfolio and income diversification while significantly increasing its position in the individual and group living benefits insurance market. Furthermore, A.M. Best notes the continued financial support afforded to RBC Life from its ultimate parent, Royal Bank of Canada Bank of Canada Canada's central bank, established under the Bank of Canada Act (1934). It was founded during the Great Depression to regulate credit and currency. The Bank acts as the Canadian government's fiscal agent and has the sole right to issue paper money. , which funded this transaction. The rating reflects RBC Life's adequate capitalization, diversified distribution channels, living benefit growth opportunities and the financial support from its parent. Although A.M. Best acknowledges the integration challenges associated with this transaction, these concerns are somewhat mitigated by a transition plan that has been implemented by RBC Life to provide technology infrastructure and support necessary for policy administration. 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. |
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