A.M. Best Places Rating of Transamerica Life Canada Under Review.Circuit Ordered: Candian Timely Disclosure BW Office: NY (X) Immediate Release ( ) EMBARGO embargo (ĕmbär`gō), prohibition by a country of the departure of ships or certain types of goods from its ports. Instances of confining all domestic ships to port are rare, and the Embargo Act of 1807 is the sole example of this in : (Give instructions) ________________________________ ( ) Special Instructions: _______________________________________ ( ) SEDAR SEDAR System for Electronic Document Analysis and Retrieval SEDAR Southeast Data, Assessment, and Review Filing requested -0- Business Editors OLDWICK, N.J.--(BUSINESS WIRE)--Dec. 13, 2002 A.M. Best Co. has placed the financial strength rating of A+ (Superior) of Transamerica Life Canada (Scarborough, Ontario This article is about the Toronto borough and former Canadian municipality. For other places, see Scarborough. Scarborough is the area that forms the eastern part of the City of Toronto, Ontario, Canada. ) under review with negative implications. This rating action reflects the challenges facing Transamerica from increasing competition in the Canadian life marketplace and weakened weak·en tr. & intr.v. weak·ened, weak·en·ing, weak·ens To make or become weak or weaker. weak  en·er n. earnings performance in 2002.
The competitive landscape in Canada has changed significantly in recent years and is increasingly dominated by large organizations with diversified diversified (di·verˑ·s sources of earnings and significant scale advantages. A.M. Best believes Transamerica's future operating results may be impacted by the rapidly consolidating Canadian life insurance market, which may lead to heightened sales, pricing and earnings pressures in an already highly competitive marketplace. Additionally, Transamerica is highly dependent on fee income from its 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). , which have experienced recent volatility. The rating will remain under review while A.M. Best meets with Transamerica's senior management team to review its financial, strategic and operational plans. 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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