AM Best Affirms Credit Ratings of TD Reinsurance (Barbados) Inc.
May 23 2024 - 9:53AM
Business Wire
AM Best has affirmed the Financial Strength Rating of A
(Excellent) and the Long-Term Issuer Credit Rating of “a+”
(Excellent) of TD Reinsurance (Barbados) Inc. (TD Re) (Barbados).
The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect TD Re’s balance sheet strength, which AM
Best assesses as very strong, as well as its strong operating
performance, neutral business profile and appropriate enterprise
risk management.
TD Re is owned ultimately by The Toronto-Dominion Bank (TD
Bank), which is among the leading banks in Canada, as measured by
market capitalization. The parent bank is a strong organization
with approximately CAD 112 billion of IFRS equity at financial
year-end 2023 and CAD 2 trillion in assets. In addition, the bank
earned approximately CAD 10.2 billion in net income on CAD 50.5
billion in revenue in fiscal-year 2023. AM Best notes that given
the parent’s prior history of capital support provided to TD Re
through internal loans, TD Bank may at its discretion provide
additional support should TD Re need it. In fiscal-year 2024, AM
Best notes that TD Re may for a few quarters moderately reduce the
dividends upstreamed to its parent company, to enhance its level of
available capital and maintain its risk-adjusted capitalization
after transitioning to IFRS17.
The stable outlooks reflect TD Re’s very strong overall balance
sheet strength assessment that has been maintained over the long
term supported by consistently strong operating performance. The
company’s favorable operating return on equity on a longstanding
basis provides significant support to the balance sheet and
reflects TD Re’s appropriate underwriting practices in its Canadian
property/casualty, creditor life, and European longevity
reinsurance products.
This press release relates to Credit Ratings that have been
published on AM 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 AM Best’s Recent
Rating Activity web page. For additional information
regarding the use and limitations of Credit Rating opinions, please
view Guide to Best's Credit Ratings. For information
on the proper use of Best’s Credit Ratings, Best’s Performance
Assessments, Best’s Preliminary Credit Assessments and AM Best
press releases, please view Guide to Proper Use of Best’s
Ratings & Assessments.
AM Best is a global credit rating agency, news publisher and
data analytics provider specializing in the insurance industry.
Headquartered in the United States, the company does business in
over 100 countries with regional offices in London, Amsterdam,
Dubai, Hong Kong, Singapore and Mexico City. For more information,
visit www.ambest.com.
Copyright © 2024 by A.M. Best Rating
Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240523141935/en/
Stratos Laskarides Senior Financial Analyst +1 908 882
1995 stratos.laskarides@ambest.com
Edward Kohlberg Director +1 908 882 1979
edward.kohlberg@ambest.com
Christopher Sharkey Associate Director, Public Relations +1
908 882 2310 christopher.sharkey@ambest.com
Al Slavin Senior Public Relations Specialist +1 908 882
2318 al.slavin@ambest.com