DBRS has announced that it:
placed iA Financial Corporation Inc.’s (iA or the Company) Issuer Rating of A (low) and Subordinated Debentures rating of BBB (high) Under Review with Positive Implications. DBRS Morningstar also placed the Issuer Rating of A (high), the Financial Strength Rating of A (high), the Subordinated Debentures rating of “A,” and the Non-Cumulative Preferred Shares rating of Pfd-2 (high) for Industrial Alliance Insurance and Financial Services Inc., iA’s major insurance operating subsidiary, Under Review with Positive Implications.
KEY RATING CONSIDERATIONS
The Under Review with Positive Implications status reflects DBRS Morningstar’s view that iA has made significant efforts over the past few years to improve its risk profile, in particular its sensitivities to market-related risks. The Company has materially reduced its sensitivities to interest rate and equity market movements, an important consideration given the relatively large proportion of individual insurance and segregated fund products in the Company’s product portfolio, and the sustained low interest rate environment that continues to put pressure on life insurers. The Company has also experienced some success in shifting its product portfolio toward less capital-intensive products, reducing the level of guarantees offered and increasing its proportion of fee-based business. During the review period, which is expected to be concluded within 90 days, DBRS Morningstar will focus on the Company’s improving capabilities in limiting the impact of adverse market movements on its net income and regulatory solvency ratios. In addition, DBRS Morningstar will assess the impact of the Coronavirus Disease (COVID-19), which has been more limited than expected so far, on iA’s credit fundamentals.
Affected issues are IAF.PR.B, IAF.PR.G and IAF.PR.I. There was ticker change for these issues in 2019.
This entry was posted on Thursday, December 10th, 2020 at 8:27 pm and is filed under Issue Comments. You can follow any responses to this entry through the RSS 2.0 feed.
You can leave a response, or trackback from your own site.
IAF on Review-Positive at DBRS
DBRS has announced that it:
Affected issues are IAF.PR.B, IAF.PR.G and IAF.PR.I. There was ticker change for these issues in 2019.
This entry was posted on Thursday, December 10th, 2020 at 8:27 pm and is filed under Issue Comments. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.