A.M. Best Assigns Debt Rating to Great-West Lifeco Inc.’s Newly Issued
OLDWICK, N.J. -- May 22, 2014
A.M. Best has assigned a debt rating of “bbb+” to the recently issued CAD 200
million 5.25% non-cumulative first preferred Series S shares of Great-West
Lifeco Inc. (Great-West Life) (Winnipeg, Manitoba). The outlook assigned is
stable, and the existing ratings of Great-West Life and its subsidiaries are
The proceeds from the preferred shares offering will be utilized for general
corporate purposes and to augment the corporation’s liquidity position. A.M.
Best notes that Great-West Life’s adjusted financial leverage is expected to
remain below 30%, which is within A.M. Best’s guidelines to support the
assigned rating. Additionally, Great-West Life’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 Life’s very strong market position in its core
business lines, its highly diversified earnings profile and excellent
financial flexibility. Great-West Life has generated positive results from its
diversified insurance, reinsurance and financial services operations. The
company realized strong sales growth during the first quarter of 2014 while
maintaining a strong return on equity driven mainly by increased mutual fund
sales and the 2013 acquisition of Irish Life Group Limited.
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
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 © 2014 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.
A.M. Best Company
Edward Kohlberg, 908-439-2200, ext. 5664
Senior Financial Analyst
Thomas Rosendale, 908-439-2200, ext. 5201
Assistant Vice President
Rachelle Morrow, 908-439-2200, ext. 5378
Senior Manager, Public Relations
Jim Peavy, 908-439-2200, ext. 5644
Assistant Vice President, Public Relations
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