AM Best withdraws credit ratings from The Empire Life Insurance Company


OLDWICK, NJ–()–AM Best has confirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a” (Excellent) of The Empire Life Insurance Company (Empire Life) (Kingston, Ontario, Canada). At the same time, AM Best has confirmed Empire Life’s Long-Term Issue Credit Ratings (Long-Term IR). The outlook for these Credit Ratings (ratings) is stable. (See below for details of the Long-Term IRs.) Empire Life is a subsidiary of EL Financial Corporation Limited (EL Financial), which operates as a publicly traded Canadian investment and insurance holding company. At the same time, AM Best withdrew these ratings because it requested that it no longer participate in AM Best’s interactive rating process.

The ratings reflect Empire Life’s strong balance sheet, which AM Best rated as very strong, as well as its strong operational performance, neutral company profile and appropriate risk management for companies.

Empire Life maintains the highest level of risk-adjusted capital, as measured by Best’s Capital Adequacy Model (BCAR), which supports its business and investment risks despite its increased exposure to stock market risk. Risk-adjusted capitalization is enhanced by the high credit quality of the investment portfolio and the steady rise in aggregate capital levels due to favorable earnings and debt issuance. Empire Life’s capitalization has supported growth while maintaining levels that support stressed capital targets. In addition, operating results were consistently positive, although earnings fluctuated from year to year. AM Best expects earnings to remain positive in the short to medium term, with some expected fluctuations, mainly due to the effects of stock market volatility and interest rates. The company continues to benefit from a diversified revenue stream, including the asset management and individual insurance segment, along with continued solid results from the employee benefits segment, despite relatively flat revenue growth.

The following Empire Life long-term IRs have been confirmed with a stable outlook. At the same time, AM Best has revoked the Long-Term IRs at the company’s request.

— “bbb+” (good) on CAD 200 million 3.664% fixed/floating rate subordinated bonds, due March 15, 2028

— “bbb+” (good) on CAD 200 million 3.383% fixed/floating rate subordinated bonds, due December 16, 2026

This press release relates to Credit Ratings published on AM Best’s website. For all rating information related to the release and relevant disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, see AM Best’s Recent Review Activity webpage. For more information on the uses and limitations of credit rating advice, see Best . Credit Rating Guide. For information on proper media use of Best’s Credit Ratings and AM Best press releases, see: Guide to Media – Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. The company is headquartered in the United States and does business in more than 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information visit

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