A.M. Best Places Clarica Under Review With Positive Implications.Business Editors OLDWICK, N.J.--(BUSINESS WIRE)--Dec. 17, 2001 A.M. Best Co. has placed under review with positive implications the financial strength rating of A+ (Superior) for Clarica Life Insurance Company, Ontario, and its wholly-owned strategic subsidiary, Clarica U.S., Inc., following the announcement by Sun Life Assurance Company of Canada and Clarica of the agreement to combine operations. Furthermore, the under review with positive implications applies to Clarica's existing debt. The A++ (Superior) financial strength rating of Sun Life Assurance Company of Canada and its strategic subsidiaries as well as the A+ (Superior) financial strength ratings of Keyport Life Insurance Company and its life insurance subsidiaries are unaffected. Sun Life's existing debt ratings are also unaffected by the announcement. These rating actions follow Sun Life's announced intention to acquire Clarica in a stock transaction valued at approximately CN$7.3 billion. Under the terms of the agreement, Clarica's shareholders will receive 1.5135 of Sun Life's common shares for each Clarica share. The transaction is expected to close by the second quarter of 2002 and is subject to shareholder, policyholder Policyholder An individual who owns an insurance policy. and regulatory approvals. This transaction will create the largest life insurance company in Canada as measured by market capitalization Market Capitalization A measure of a public company's size. Market capitalization is the total dollar value of all outstanding shares. It's calculated by multiplying the number of shares times the current market price. This term is often referred to as market cap. . Moreover, A.M. Best views this acquisition as a key component of Sun Life's growth strategy to become a leading North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. company. The combined company is expected to achieve leading market share positions in all major life protection product and wealth accumulation market segments in Canada--driven in part by the creation of a strong diversified diversified (di·verˑ·s life insurance distribution system--combining Sun Life's existing brokerage network with Clarica's industry-leading direct sales force. Clarica enjoys strong market positions in a number of Canadian business Canadian Business is the longest-publishing business magazine in Canada. It was founded in 1928 as The Commerce of the Nation, the organ of the Canadian Chamber of Commerce. The magazine was renamed Canadian Business in 1933. segments. The company's strong Canadian Canadian (kənā`dēən), river, 906 mi (1,458 km) long, rising in NE New Mexico. and flowing E across N Texas and central Oklahoma into the Arkansas River in E Oklahoma. individual insurance operations are enhanced by its large career sales force, which has contributed to both sales growth and excellent persistency. In addition to traditional life insurance, Clarica is a significant player in the wealth management, employee benefits and pension market segments with significant portfolios of segregated and mutual funds. The financial strength rating has been placed under review with positive implications for the following companies: -- Clarica Life Insurance Company -- Clarica Life Insurance Company - U.S. The following debt ratings have also been placed under review with positive implications: Clarica Life Insurance Co.-- -- "a+" rating on C$250 million 5.80% subordinated debentures subordinated debenture An unsecured bond with a claim to assets that is subordinate to all existing and future debt. Thus, in the event that the issuer encounters financial difficulties and must be liquidated, all other claims must be satisfied before , Series 1, due 2013 -- "a+" rating on C$150 million 6.30% subordinated debentures, Series 2, due 2028 -- "a+" rating on C$300 million 6.65% subordinated debentures, Series 3, due 2015 -- "a" rating on C$150 million non-cumulative redeemable Redeemable Eligible for redemption under the terms of an indenture. 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 1 Clarica U.S. Inc.-- -- "a+" rating on(pound)125 million 7.25% subordinated guaranteed bonds, due 2004 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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