AM Best Confirms TD Reinsurance (Barbados) Inc. Credit Ratings – InsuranceNewsNet

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OLDWICK, NJ–(BUSINESS WIRE)–
AM Best affirmed the financial strength rating of A (Excellent) and the long-term credit rating of “a+” (Excellent) of TD Reinsurance (Barbados) Inc. (TD Re) (Barbados). The outlook for these Credit Ratings (ratings) is stable.

The ratings reflect the strength of TD Re’s balance sheet, which AM Best rates as very strong, as well as its strong operating performance, neutral business profile and appropriate management of business risks.

TD Re is a life and general insurance reinsurer ultimately owned by The Toronto-Dominion Bank (TD Bank). TD Re primarily reinsures credit insurance policies underwritten by third-party life insurance companies on consumer loans issued by TD Bank’s Canadian retail branches. The company has also reinsured homeowners and private passenger auto insurance with a 25% co-payment agreement with another TD Bank subsidiary since 2017. Despite the implications of the COVID-19 pandemic, TD Re maintained its strong return on equity through favorable underwriting results and favorable growth. risk-adjusted capital position through the end of its 2021 fiscal year. The company also continues to maintain multiple high-quality investment portfolios that are managed to match the specific liability profiles of the business it supports .

These strengths are partially offset by a reliance on Canadian consumer loans for growth and a slow shift in business mix over time towards general insurance. Due to the digitization of banking services, the elimination of face-to-face transactions and the acceleration thereof following the COVID-19 pandemic, creditor premiums have tended to decline over the long term. Additionally, while earnings have been favorable for the general insurance line of business so far, the homeowner and passenger vehicle lines of business are considered riskier and more capital intensive than the lines of business. creditors.

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 relevant disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Assessment Activity Web page. For more information on the use and limitations of credit rating opinions, please see Best Credit Score Guide. For more information on the proper use of Best’s Credit Ratings, Best’s Performance Ratings, Best’s Preliminary Credit Ratings, and AM Best’s press releases, please see Guide to Proper Use of Best’s Ratings and Reviews.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Based at United Statesthe company does business in more than 100 countries with regional offices in London, amsterdam, dubai, hong kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2022 by AM Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

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Kevin Varvaro
Financial Analyst

+1 908 439 2200 ext. 5487

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Edward Kohlberg
Director

+1 908 439 2200 ext. 5664

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Christopher Sharkey
Manager, Public Relations

+1 908 439 2200 ext. 5159

[email protected]

Jeff Mango
General director,

Communications Strategy

+1 908 439 2200 ext. 5204

[email protected]

Source: AM Best

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