A.M. Best Affirms Ratings of BMO Life Assurance Company

OLDWICK, N.J.--(BUSINESS WIRE)-- A.M. Best has affirmed the financial strength rating of A (Excellent) and the issuer credit rating of "a" of BMO Life Assurance Company (BMOLAC) (Toronto, Canada). The outlook for both ratings is stable. BMOLAC is an indirect wholly owned subsidiary of Bank of Montreal (BMO) through BMO Life Insurance Company, an intermediate holding company.

BMOLAC underwrites a full suite of individual life insurance products including term life, whole life, universal life, critical illness, structured settlements and annuities. The company distributes its products across Canada through independent agents, as well as in the direct-to-consumer market.

The ratings of BMOLAC reflect its positive operating performance, more-than-adequate risk-adjusted capitalization, diversified product offerings and its strategic role within BMO. BMOLAC has experienced strong net premiums written and capital growth in recent years as it maintains a solid market position in certain niche product lines. BMOLAC also benefits from BMO's explicit capital investment. Furthermore, A.M. Best believes additional capital would be provided when warranted.

Offsetting rating factors include the challenges BMOLAC faces while positioning to increase its market share and achieve meaningful scale in Canada's highly concentrated life insurance marketplace. The ratings also reflect the earnings volatility and challenges associated with the current low interest rate environment and volatile equity markets. A.M. Best also notes the company’s assets liability duration mismatch given the low interest rates and the long term and interest sensitive nature of the company’s business.

This press release relates to rating(s) that have been published on A.M. 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 visit A.M. Best’s Ratings & Criteria Center.

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 © 2015 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.

View source version on businesswire.com: http://www.businesswire.com/news/home/20151028006636/en/

A.M. Best
Richard McMillan, 908-439-2200, ext. 5615
Managing Senior Financial Analyst
[email protected]
or
Christopher Sharkey, 908-439-2200, ext. 5159
Manager, Public Relations
[email protected]
or
Edward Kohlberg, 908-439-2200, ext. 5664
Senior Financial Analyst
[email protected]
or
Jim Peavy, 908-439-2200, ext. 5644
Assistant Vice President, Public Relations
[email protected]

Source: A.M. Best

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