A.M. Best Places Great-West Life Assurance, London Life Under Review Following Announcement of Planned Acquisition.OLDWICK, N.J.--(BUSINESS WIRE)--Aug. 19, 1997--Effective immediately, A.M. Best Co. has placed the "A++" (Superior) ratings of the Great-West Life Assurance The Great-West Life Insurance Company (known more commonly 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. Co., Winnipeg Winnipeg, city, Canada Winnipeg (wĭn`ĭpĕg), city (1991 pop. 616,790), provincial capital, SE Man., Canada, at the confluence of the Red and Assiniboine rivers. , Manitoba Manitoba (mănĭtō`bə), province (2001 pop. 1,119,583), 250,934 sq mi (650,930 sq km), including 39,215 sq mi (101,580 sq km) of water surface, W central Canada. , and the London Life Insurance Co., London, Ontario, under review with developing implications following today's announcement by Great-West Life of its intent to acquire London Life's immediate parent, London Insurance Group Inc. The ratings will remain under review pending further discussions with senior management regarding expense savings and synergies to be realized from the combined organizations, as well as financing arrangements and the determination of the final price of the transaction. The acquisition will create a market leader in Canada, by asset size and revenues, as well an organization with a leadership position in individual life and disability insurance and in the small and large group life and health market. The combined organizations also would hold the largest share of the segregated funds Segregated Fund A type of annuity that is similar to a mutual fund, and is an insurance product and offered only by insurance companies. Notes: Most segregated funds will guarantee a specific return, anywhere from 70% to 120%, over a certain period of time (five-10 years). market. In combination with the Investors Group--Canada's largest mutual fund distributor--the combined entity would enjoy Canada's largest distribution sales force, with 7,000 representatives. A.M. Best believes the potential exists for substantial cost savings and synergies to develop as duplication duplication /du·pli·ca·tion/ (doo-pli-ka´shun) 1. the act or process of doubling, or the state of being doubled. 2. is eliminated and the product portfolio available to the various distribution channels is enhanced. Subsidiary companies affected by this rating action are the Great-West Life & Annuity annuity: see insurance. annuity Payment made at a fixed interval. A common example is the payment received by retirees from their pension plan. There are two main classes of annuities: annuities certain and contingent annuities. Insurance Co., Denver, and the First Great-West Life & Annuity Insurance Co., Albany, N.Y., rated "A++" (Superior) and the "A+" (Excellent) rating of the London Life Reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract. Co., Blue Bell, Pa. A.M. Best Co., established in 1899, is America's oldest and most widely recognized insurance rating and information source. CONTACT: Jeffrey Dunsavage (908) 439-2200, ext. 5618 dunsavj@ambest.com |
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