A.M. Best has affirmed the Financial Strength Rating of A
(Excellent) and the Long-Term Issuer Credit Rating of "a+" of BMO
Reinsurance Limited (BMO Re) (Barbados). The outlook of these Credit
Ratings (ratings) is stable.
BMO Re is an indirect wholly owned subsidiary of Bank of Montreal
(BMO) and is a reinsurer of life, property/casualty and disability
risks. The ratings of BMO Re reflect its stable net income trends,
strong return on equity and strong liquidity. In addition, BMO Re
continues to maintain strong risk-adjusted capitalization levels, as
well as low levels of credit risk within its investment portfolio, which
is primarily invested in highly rated sovereigns, supranationals and
While recognizing the strength of the relationship with BMO, A.M. Best
notes that volatility in Canada's economic conditions could impact the
creditor life insurance market and BMO Re's ability to grow premiums.
Also, BMO Re continues to have exposure to potential earnings volatility
from its assumed property/casualty risk; however, A.M.Best notes that
this risk has a lesser degree of volatility compared with previous years.
This press release relates to Credit Ratings 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 see A.M. 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.
A.M. Best is the world's oldest and most authoritative insurance
rating and information source. For more information, visit www.ambest.com.
Copyright © 2017 by A.M. Best Rating Services, Inc. and/or its
subsidiaries. ALL RIGHTS RESERVED.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170405006083/en/
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