AM Best Affirms Credit Ratings of Great-West Lifeco Inc. and Its Subsidiaries

March 07, 2025 at 11:34 AM EST

AM Best has affirmed the Financial Strength Rating (FSR) of A+ (Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICRs) of “aa” (Superior) of The Canada Life Assurance Company (Canada Life) (Winnipeg, Manitoba) and its affiliates. Concurrently, AM Best has affirmed the Long-Term ICR of “a” (Excellent) and the Long-Term Issue Credit Ratings (Long-Term IRs) of Great-West Lifeco Inc. (Winnipeg, Manitoba). Additionally, AM Best has affirmed the Long-Term ICR of “a” (Excellent) of LRG (US), Inc. (Delaware). The outlook of these Credit Ratings (ratings) is stable. (See below for a detailed listing of the affiliates and Long-Term IRs.)

The ratings reflect Canada Life’s balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, very favorable business profile and appropriate enterprise risk management.

The group’s balance sheet continues to maintain a very strong level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR) and reflected in its Life Insurance Capital Adequacy Test (LICAT) score. Absolute capital levels are supported by favorable and well-diversified earnings from both a product and geographic perspective. Furthermore, the company maintains multiple competitive or leading positions in various product lines due in part to a large well-developed, multi-channel distribution network. Partially offsetting these positive factors is the potential for expanding geopolitical risks in the markets Great-West operates within including Canada, the United States and Europe. However, AM Best notes that while the group may be more likely to encounter issues due to its global reach, the substantial diversification would likely limit risks when compared to more concentrated peers.

The FSR of A+ (Superior) and the Long-Term ICRs of “aa” (Superior) have been affirmed with stable outlooks for The Canada Life Assurance Company and its affiliates:

Canada Life International Reinsurance Corporation Limited
Canada Life Re Ireland Designated Activity Company
Canada Life Reinsurance Company
London Life and Casualty (Barbados) Corporation
London Life and Casualty Reinsurance Corporation
Empower Annuity Insurance Company of America
Empower Life & Annuity Insurance Company of New York
Empower Annuity Insurance Company

The following Long-Term IRs have been affirmed with stable outlooks:

Great-West Lifeco Inc.—

— “a” (Excellent) on EUR 500 million 1.75% senior unsecured debentures, due 2026

— “a” (Excellent) on CAD 500 million 3.337% senior unsecured debentures, due 2028

— “a” (Excellent) on CAD 200 million 6.74% senior unsecured debentures, due 2031

— “a” (Excellent) on CAD 400 million 6.67% senior unsecured debentures, due 2033

— “a” (Excellent) on CAD 343.788 million 5.998% senior unsecured debentures, due 2039

— “a” (Excellent) on CAD 600 million 2.379% senior unsecured debentures, due 2030

— “bbb+” (Good) on CAD 200 million 4.80% non-cumulative preferred stock

— “bbb+” (Good) on CAD 200 million 5.15% non-cumulative preferred stock

— “bbb+” (Good) on CAD 250 million 5.40% non-cumulative preferred stock

— “bbb+” (Good) on CAD 170 million 5.65% non-cumulative preferred stock

— “bbb+” (Good) on CAD 150 million 5.80% non-cumulative preferred stock

— “bbb+” (Good) on CAD 300 million 5.20% non-cumulative preferred stock

— “bbb+” (Good) on CAD 300 million 4.5% non-cumulative preferred stock

— “bbb+” (Good) on CAD 300 million 4.85% non-cumulative preferred stock

— “bbb+” (Good) on CAD 200 million 5.25% non-cumulative preferred stock

— “bbb+” (Good) on CAD 200 million 4.5% non-cumulative preferred stock

Great-West Lifeco Finance (Delaware) LP—

— “a” (Excellent) on USD 700 million 4.15% senior unsecured debentures, due 2047

Great-West Lifeco Finance 2018, LP—

— “a” (Excellent) on USD 300 million 4.047% senior unsecured notes, due 2028

— “a” (Excellent) on USD 500 million 4.581% senior unsecured notes, due 2048

The Canada Life Assurance Company—

— “a+” (Excellent) on CAD 100 million 6.40% subordinated debentures, due 2028

Canada Life Capital Trust—

— “a” (Excellent) on CAD 150 million 7.529 % non-cumulative preferred stock due 2052

Great-West Lifeco U.S. Finance 2020, LP—

— “a” (Excellent) on USD 500 million .904% senior unsecured notes, due 2025

Empower Finance 2020, LP—

— “a” (Excellent) on USD 400 million 1.357% senior unsecured notes, due 2027

— “a” (Excellent) on USD 400 million 1.776% senior unsecured notes, due 2031

— “a” (Excellent) on USD 700 million 3.075% senior unsecured notes, due 2051

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

Great-West Lifeco Inc.—

— “a” (Excellent) on senior unsecured debt

— “a-” (Excellent) on subordinated debt

— “bbb+” (Good) on junior subordinated debt

— “bbb+” (Good) on preferred stock

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.

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

View source version on businesswire.com: https://www.businesswire.com/news/home/20250307063349/en/

Contacts

Kevin Varvaro

Senior Financial Analyst

+1 908 882 2410

kevin.varvaro@ambest.com

Michael Porcelli

Senior Director

+1 908 882 2250

michael.porcelli@ambest.com

Christopher Sharkey

Associate Director, Public Relations

+1 908 882 2310

christopher.sharkey@ambest.com

Al Slavin

Senior Public Relations Specialist

+1 908 882 2318

al.slavin@ambest.com

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AM Best Affirms Credit Ratings of Great-West Lifeco Inc. and Its Subsidiaries

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