OLDWICK, N.J.–(BUSINESS WIRE)–AM Best has affirmed the Financial Strength Rating of A
(Excellent) and the Long-Term Issuer Credit Rating of “a+” 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
categorizes as very strong, as well as its strong operating performance,
neutral business profile and appropriate enterprise risk management.
TD Re primarily is a life reinsurer that ultimately is owned by The
Toronto-Dominion Bank (TD Bank). TD Re principally reinsures credit
insurance policies underwritten by third-party life insurance carriers
on consumer loans originated by TD Bank’s Canadian retail branches. In
2017, the company finalized its first general insurance transaction with
another TD Bank subsidiary with a 25% quota share on homeowners and
private passenger auto insurance. Despite this change, the company
continues to have a high return on equity due to favorable underwriting
results on a solid capital base through 2018. Furthermore, the company
maintains a high quality investment portfolio that adequately matches
its liability profile.
These strengths are offset partially by a dependence on Canadian
consumer loan originations for growth and the recent move to take on
what AM Best categorizes as higher risk products in the new general
insurance transaction. While the company’s financial leverage initially
increased as a result of this business change, AM Best notes that the
overall balance sheet strength remains very strong.
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 Understanding
Best’s Credit Ratings. For information on the proper media
use of Best’s Credit Ratings and AM Best press releases, please view Guide
for Media – Proper Use of Best’s Credit Ratings and AM Best Rating
Action Press Releases.
AM Best is a global rating agency and information provider with a
unique focus on the insurance industry. Visit www.ambest.com
for more information.
Copyright © 2019 by A.M. Best Rating Services, Inc. and/or its
affiliates. ALL RIGHTS RESERVED.
+1 908 439
2200, ext. 5487
Manager, Public Relations
+1 908 439
2200, ext. 5159
+1 908 439 2200, ext. 5359
Director, Public Relations
+1 908 439
2200, ext. 5644