AM Best believes that Independence will continue to benefit from its parent company’s significant experience in the stop-loss insurance market as it continues to grow in the space.

The company’s strategic importance to the Sun Life Group has increased in recent years since it began writing stop-loss insurance in 2020. The ratings of Independence reflect its balance sheet strength, which AM Best assesses as very strong as well as its marginal operating performance, very limited business profile and very strong enterprise risk management.

This provides protection to the group’s global risk profile. Partially mitigating these risks is the extensive array of sensitivity and stress testing being conducted by the group, which goes beyond what is required by regulators and includes impacts on earnings, regulatory capital and liquidity. While Sun Life Group has focused on reducing volatility within the liability structure of its product offerings, its earnings remain moderately exposed to equity market volatility and changes in interest rates. The balance sheet is supported further by overall favorable operating earnings, strong liquidity metrics and a holding company that can provide additional financial flexibility. The group maintains a very strong level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR). The ratings reflect Sun Life Group’s balance sheet strength, which AM Best assesses as strongest, as well as its strong operating performance, favorable business profile and very strong enterprise risk management. Lastly, AM Best has affirmed the FSR of B++ (Good) and the Long-Term ICR of “bbb+” (Good) of Professional Insurance Company (Dallas, TX), an SLF runoff subsidiary. (Please see below for a detailed listing of the Long-Term IRs.)Īdditionally, AM Best has revised the outlooks to positive from stable for Independence Life and Annuity Company (Independence) (Wilmington, DE), a strategic subsidiary of SLF, and affirmed the FSR of A- (Excellent) and the Long-Term ICR of “a-” (Excellent). The outlook of these Credit Ratings (ratings) is stable. Concurrently, AM Best has affirmed the Long-Term ICR of “a” (Excellent) and the Long-Term Issue Credit Ratings (Long-Term IRs) of SLF. (SLF) (Ontario, Canada) (collectively referred to as Sun Life Group).

These companies are the core insurance subsidiaries of Sun Life Financial Inc.

OLDWICK, N.J.-( BUSINESS WIRE)- AM Best has affirmed the Financial Strength Rating (FSR) of A+ (Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “aa” (Superior) of Sun Life Assurance Company of Canada (Sun Life) (Ontario, Canada) and Sun Life and Health Insurance Company (U.S.) (Lansing, MI).

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