A.M. Best Affirms Credit Ratings of The Wawanesa Mutual Insurance Company; Upgrades Credit Ratings of Western Life Assurance Company
Additionally,
The ratings of Wawanesa Mutual reflect its balance sheet strength, which
The ratings of Wawanesa General reflect its balance sheet strength, which
The ratings of Wawanesa Life reflect its balance sheet strength, which
Wawanesa Life’s risk-adjusted capitalization, as defined by Best’s Capital Adequacy Ratio (BCAR), is assessed as strongest, which is supported by overall good credit quality of invested assets, low use of reinsurance and no financial leverage. The company has historically had positive earnings trends, despite reporting a net loss in 2017 due to the write-down of a systems application and acquisition expenses related to the purchase of Western Life. Wawanesa Life is considered strategically important to its parent company, Wawanesa Mutual, as it provides options to offer life, annuity, accident and sickness, and disability products to the property/casualty client base and broker channel. The Western Life acquisition will allow the company to expand its business profile with minimal overlap to Wawanesa Life’s product offerings and distribution, as Western Life offers non-participating products through a multi-channel distribution network. The rating upgrades for Western Life reflect its strategic importance and integration with Wawanesa Life.
Partially offsetting these factors is that Wawanesa Life and Western Life are part of a highly competitive market, which is dominated by three large insurers that possess size and scale advantages. In addition, the life companies may face challenges to execute on their long-term strategy of increasing efficiencies and synergies.
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. For information on the proper media use of Best’s Credit Ratings and
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