AM Best upgrades SSQ ratings
Ratings agency, AM Best, announced this week that it is upgrading its ratings for SSQ Life Insurance Company Inc. The company upgraded SSQ’s financial strength rating to an “A”, up from an A- , and upgraded its long-term issuer credit rating to an “a”, up from an a-.
“The ratings reflect SSQ’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,” AM Best said in its release on Thursday.
“SSQ continues to priorities expanding outside of Quebec, with some success over the long term. The rating upgrades reflect SSQ’s improved risk-adjusted capitalization, decreasing financial leverage and growth of absolute capital over the previous several years,” they add. “SSQ also continues to produce strong and consistent operating performance year-over-year, often posting low double-digit returns on equity. Despite some volatility in earnings by line, SSQ’s core group insurance business continues to generate favourable earnings on growing business volume, which is expected to accelerate in 2020, as the company takes on group business from the nearly 40,000 employees and retirees of HydroQuebec.”
SSQ is the sixth largest life insurer in Canada by premium volume. AM Best says it expects the company will continue to have strong balance sheets, backed by favourable earnings going forward.