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DUFF & PHELPS: THE CANADA LIFE ASSURANCE COMPANY CLAIMS PAYING ABILITY RATED 'AAA'; ALSO RATES TWO SUBSIDIARIES

 CHICAGO, July 1 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has reaffirmed the `AAA' (Triple-A) claims paying ability ratings of The Canada Life Assurance Company (Canada Life) and its two wholly owned subsidiaries, Canada Life Insurance Company of America (CLICA) and Canada Life Insurance Company of New York (CLNY). The ratings recognize the consolidated enterprise's: (1) internationally diversified product lines across underwriting, spread and fee-based businesses; (2) maintenance of exceptional capitalization and modest operating leverage; (3) high quality assets; (4) more than adequate liquidity enhanced by above average stability of annuity and deposit reserves; and (5) the management and investment discipline intrinsic to multiple layers of regulatory control in four countries. The company's strengths offset lower expected profits for the next couple of years due to increased taxes, competitiveness in the Canadian marketplace, and increasing asset chargeoffs, although still low compared to Canadian and U.S. competitors. The `AAA' claims paying ability ratings of CLICA and CLNY are based on Canada Life's financial strength and its support of the subsidiaries net worth and liquidity.
 Canada Life is an internationally diversified mutual company, offering a broad range of insurance products in Canada, the United States, the United Kingdom and the Republic of Ireland. With admitted assets of C$19.2 billion and adjusted surplus of C$2.2 billion at December 31, 1992, Canada Life ranks among the major Canadian life insurers and the top 30 life insurers in North America.
 Net operating results fell 22 percent to C$156 million in 1992, but return on assets was a reasonable 2.03 percent versus 2.15 percent the prior year. Operating results included amortization of net realized and unrealized capital gains of C$82 million and investment writedowns of C$37 million. The decline of C$43 million over the previous year was mainly attributable to a higher tax burden, asset writedowns, and declining real estate values. Canada Life's capitalization of C$2.2 billion, or 11.3 percent of total assets, at yearend 1992 is considered exceptional. Included in adjusted capital and surplus were C$275 million of deferred net realized gains and C$42 million in deferred taxes. Operating leverage of 6.04 times was considered very conservative since 63 percent of Canada Life premiums and deposits are annuity and pension business.
 -0- 7/1/93
 /CONTACT: Martha M. Butler, CFA, 312-368-3191, of Duff & Phelps Credit Rating Co./


CO: The Canada Life Assurance Company; Canada Life Insurance Company
 of America; Canada Life Insurance Company of New York ST: IN: INS SU: RTG


LR -- NY043 -- 7649 07/01/93 11:04 EDT
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Publication:PR Newswire
Date:Jul 1, 1993
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