A.M. Best Assigns Rating to Great-West Lifeco's Preferred Shares.OLDWICK, N.J. -- A.M. Best Co. has assigned as·sign tr.v. as·signed, as·sign·ing, as·signs 1. To set apart for a particular purpose; designate: assigned a day for the inspection. 2. an "a-"debt rating to Great-West Lifeco The Great-West Life Assurance Company (known more commonly as Great-West Life) is a life and health insurance company. Its headquarters is located in Winnipeg, Manitoba, Canada and its CEO is Raymond L. McFeetors. , Inc.'s (Great-West) (Winnipeg) CAD 300 million 4.50% Non-Cumulative First Preferred Shares Preferred shares Preferred shares give investors a fixed dividend from the company's earnings and entitle them to be paid before common shareholders. See: Preferred stock. , Series I. The existing issuer credit, debt and financial strength ratings of Great-West and its subsidiaries remain unchanged. The outlook on all ratings is stable. The proceeds of the offering are expected to be used for general corporate purposes. Following the issuance of the securities, Great-West's interest coverage will remain strong and leverage ratios will remain within A.M. Best's expectations. The rating reflects Great-West's solid operating fundamentals, including its excellent risk-adjusted 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 superior financial performance, significant scale advantages in core business lines and strong investment management capabilities. The rating also considers Great-West's position as a leading life insurance company in Canada, with superior market positions in both the protection and wealth accumulation segments. Offsetting factors include the highly competitive nature of the Canadian life insurance marketplace and the increased level of goodwill and leverage associated with the acquisition of Canada Life Financial Canada Life Financial Corporation TSX: CL is a Canadian company that offers life, health, and disability insurance for groups and individuals. Founded in 1847, it was acquired by The Great-West Life Assurance Company in 2003, after rejecting a hostile takeover bid by Corporation (Toronto). For Best's Debt Ratings, all other Best's Ratings Best's rating A rating A.M. Best Co. assigns to insurance companies based on the company's ability to meet its obligations to its policyholders. , an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings. 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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