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A.M. Best says its credit ratings for BMO Life Assurance Company (BMOLAC) are stable. In a release, the insurance rating agency says BMOLAC has an excellent financial strength rating and a long-term issuer credit rating of “a.”

BMOLAC underwrites a full suite of individual life insurance products, including term life, whole life, universal life, critical illness, structured settlements and annuities. The company also has a pension risk transfer business.

A.M. Best attributes the company’s ratings to its “positive operating performance, more-than-adequate risk-adjusted capitalization, diversified product offerings and its commitment to enterprise risk management.” It also benefits from “a solid market position in certain niche product lines,” the agency says.

Still, A.M. Best notes BMOLAC will likely face difficulties as it tries to “increase its market share and achieve meaningful scale in Canada’s highly concentrated life insurance marketplace,” among other challenges.

For more on insurance, read:

Why mortgage life insurance may not be the best bet

How life insurance dispositions are taxed

Originally published on Advisor.ca
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