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A.M. Best Assigns Debt Rating to Great-West Lifeco Inc.’s Senior Unsecured Euro Bonds

  A.M. Best Assigns Debt Rating to Great-West Lifeco Inc.’s Senior Unsecured
  Euro Bonds

Business Wire

OLDWICK, N.J. -- April 18, 2013

A.M. Best Co. has assigned a debt rating of “a” to the recently announced EUR
500 million 2.50% fixed rate senior unsecured euro bonds maturing April 18,
2023 of Great-West Lifeco Inc. (Great-West) (Winnipeg, Manitoba). The assigned
outlook is stable, and the existing ratings of Great-West and its subsidiaries
are unaffected.

The proceeds from the euro bonds offering will be utilized as part of
Great-West’s plan to finance its previously announced acquisition of Irish
Life Group Limited (ILGL). A.M. Best notes that Great-West’s adjusted
financial leverage is expected to remain well below 25%, which is within A.M.
Best’s guidelines to support the assigned rating. Additionally, Great-West’s
interest and fixed charge coverage ratios also are expected to remain within
A.M. Best’s guidelines for its current rating level.

The rating reflects Great-West’s very strong market position in its core
business lines, its highly diversified earnings profile and excellent
financial flexibility. Great-West’s diversified insurance, reinsurance and
financial services operations along with its strong enterprise risk management
capabilities have enabled it to manage through adverse economic conditions in
recent years with only a modest impact to its overall performance and
financial strength.

A.M. Best recognizes Great-West’s consolidated position as a market leader in
the Canadian individual and group insurance markets, with stable earnings
contributions from its U.S. operations, which are driven by its growing
retirement savings business and enhanced opportunities for additional
diversification from its international business segments, including its
previously announced acquisition of ILGL. In addition to its stable sources of
earnings, Great-West also maintains a high quality investment portfolio and
excellent liquidity across the enterprise. As a result, A.M. Best anticipates
that Great-West will continue to be well positioned to comfortably service its
debt.

The methodology used in determining these ratings is Best’s Credit Rating
Methodology, which provides a comprehensive explanation of A.M. Best’s rating
process and contains the different rating criteria employed in the rating
process. Best’s Credit Rating Methodology can be found at
www.ambest.com/ratings/methodology.

Founded in 1899, A.M. Best Company is the world’s oldest and most
authoritative insurance rating and information source. For more information,
visit www.ambest.com.

       Copyright © 2013 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.

                                     ####

Contact:

A.M. Best Co.
Robert Adams, 908-439-2200, ext. 5225
Senior Financial Analyst
robert.adams@ambest.com
or
Thomas Rosendale, 908-439-2200, ext. 5201
Assistant Vice President
thomas.rosendale@ambest.com
or
Rachelle Morrow, 908-439-2200, ext. 5378
Senior Manager, Public Relations
rachelle.morrow@ambest.com
or
Jim Peavy, 908-439-2200, ext. 5644
Assistant Vice President, Public Relations
james.peavy@ambest.com
 
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