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AM Best Affirms Credit Ratings of TD Reinsurance (Barbados) Inc.

May 9, 2019

OLDWICK, N.J.--(BUSINESS WIRE)--May 9, 2019--AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a+” of TD Reinsurance (Barbados) Inc. (TD Re) (Barbados). The outlook of these Credit Ratings (ratings) is stable.

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

TD Re primarily is a life reinsurer that ultimately is owned by The Toronto-Dominion Bank (TD Bank). TD Re principally reinsures credit insurance policies underwritten by third-party life insurance carriers on consumer loans originated by TD Bank’s Canadian retail branches. In 2017, the company finalized its first general insurance transaction with another TD Bank subsidiary with a 25% quota share on homeowners and private passenger auto insurance. Despite this change, the company continues to have a high return on equity due to favorable underwriting results on a solid capital base through 2018. Furthermore, the company maintains a high quality investment portfolio that adequately matches its liability profile.

These strengths are offset partially by a dependence on Canadian consumer loan originations for growth and the recent move to take on what AM Best categorizes as higher risk products in the new general insurance transaction. While the company’s financial leverage initially increased as a result of this business change, AM Best notes that the overall balance sheet strength remains very strong.

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 pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM 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 . For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases .

AM Best is a global rating agency and information provider with a unique focus on the insurance industry. Visit www.ambest.com for more information.

Copyright © 2019 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

View source version on businesswire.com:https://www.businesswire.com/news/home/20190509005966/en/

CONTACT: Kevin Varvaro

Financial Analyst

+1 908 439 2200, ext. 5487

kevin.varvaro@ambest.com

Christopher Sharkey

Manager, Public Relations

+1 908 439 2200, ext. 5159

christopher.sharkey@ambest.com

William Pargeans

Director

+1 908 439 2200, ext. 5359

william.pargeans@ambest.com

Jim Peavy

Director, Public Relations

+1 908 439 2200, ext. 5644

james.peavy@ambest.com

KEYWORD: UNITED STATES BARBADOS EUROPE NORTH AMERICA CANADA CARIBBEAN NEW JERSEY

INDUSTRY KEYWORD: PROFESSIONAL SERVICES FINANCE INSURANCE

SOURCE: AM Best

Copyright Business Wire 2019.

PUB: 05/09/2019 04:35 PM/DISC: 05/09/2019 04:35 PM

http://www.businesswire.com/news/home/20190509005966/en