The ratings reflect Co-op Life’s favorable risk-adjusted capitalization, low product risk profile and strong operating performance. Co-op Life has a track record of consistent and profitable operating results, reflected by a five-year average return on premium in excess of 30 percent.
As a wholly owned subsidiary of
Offsetting rating factors include the relatively small scale of Co-op Life’s in-force portfolio and limited market presence.
While positive rating actions are unlikely, negative rating actions could occur due to a material decline in the company’s risk-adjusted capitalization or significant deterioration in its operating performance.
In addition, negative rating pressure could occur if there is significant deterioration in Co-op Bank’s financial strength.
Ratings are communicated to rated entities prior to publication. Unless stated otherwise, the ratings were not amended subsequent to that communication.
This press release relates to Credit Ratings that have been published on A.M. Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings.
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