AM Best has affirmed the Financial Strength Rating (FSR) of A+ (Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “aa-” (Superior) of Industrial Alliance Insurance and Financial Services Inc. (IA) (Quebec). Concurrently, AM Best has affirmed the Long-Term Issue Credit Ratings (Long-Term IR) of IA. In addition, AM Best has affirmed the FSR of A (Excellent) and the Long-Term ICRs of “a” (Excellent) of IA’s U.S. life insurance entities within the IA American Life Group (IAALG). AM Best also has affirmed the FSR of A (Excellent) and the Long-Term ICR of “a+” (Excellent) of Industrial Alliance Pacific General Insurance Corporation (IAPG) (headquartered in Vancouver, Canada). Additionally, AM Best has affirmed the FSR of A (Excellent) and the Long-Term ICR of “a” (Excellent) of Dealers Assurance Company (DAC) (Columbus, OH). The outlook of these Credit Ratings (ratings) is stable. (See below for a listing of companies.)

The ratings reflect IA’s balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, favorable business profile and appropriate enterprise risk management (ERM). The company’s Canadian operations continue to be supported by a favorable risk-adjusted capital position and consistent operating earnings despite the change in accounting standard for 2023 to IFRS 17. IA also continues to be a major player in the Canadian space with substantial market share in various product lines supported by a robust ERM framework that has historically led to conservative assumptions and reserving.

The ratings reflect IAALG’s balance sheet strength, which AM Best assesses as very strong, as well as its marginal operating performance, neutral business profile and appropriate ERM. The U.S. group continues to maintain an extremely conservative investment portfolio with the vast majority of holdings being investment grade bonds, which cater to the shorter duration products offered. While not currently part of the IAALG rating unit the recently closed acquisition of Vericity, Inc., by IA American Holdings, Inc., looks to continue the expansion of U.S. operations by adding an additional carrier and digital agency.

The ratings reflect IAPG’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate ERM. IAPG’s ratings acknowledge the company’s strongest risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), augmented by improving underwriting performance and substantial growth attributable to strong sales performance and further penetration into familiar markets.

The ratings reflect DAC’s balance sheet strength, which AM Best assesses as strong, as well as its strong operating performance, neutral business profile and appropriate ERM. DAC’s ratings further reflect consistent surplus growth from strong earnings performance and muted volatility. The ratings of IAPG and DAC reflect lift from IA in recognition of their contribution to the group’s overall strategy.

The FSR of A (Excellent) and the Long-Term ICRs of “a” (Excellent) have been affirmed with stable outlooks for the following entities of the IA American Life Group:

• IA American Life Insurance Company
• American-Amicable Life Insurance Company of Texas
• Pioneer Security Life Insurance Company
• Pioneer American Insurance Company
• Occidental Life Insurance Company of North Carolina

The following indicative Long-Term IRs on securities available under the shelf registration have been affirmed with stable outlooks:

Industrial Alliance Insurance and Financial Services Inc.—

-- “a+” (Excellent) on senior unsecured debt

-- “a” (Excellent) on subordinated debt

-- “a-” (Excellent) on preferred shares

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 Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

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