DBRS Morningstar transferred the AA financial strength rating and AA issuer rating of Great-West Life Assurance Co. to Canada Life Assurance Co. The outlook is stable.
The rating agency also withdrew the AA financial strength rating of London Life Insurance Co.
The ratings actions follows the amalgamation of Great-West Life Assurance, London Life Insurance, Canada Life Assurance and their intermediate holding companies, Canada Life Financial Corp. and London Insurance Group Inc., into one entity under the name Canada Life Assurance.
The amalgamation is aligned with Great-West Lifeco Inc.'s strategic plan and is designed to leverage the group's multiple distribution channels approach in the Canadian life insurance market in a cost-effective manner, according to the rating agency. The amalgamation is also expected to reduce costs and improve the group's competitive position in the medium to long term.