DBRS Confirms Co-operators Financial Services Limited at BBB, Trends Stable

DBRS Limited (DBRS) has today confirmed the Issuer Rating and the Senior Unsecured Debentures rating of Co-operators Financial Services Limited (CFSL or the Company) at BBB with a Stable trend.

The ratings reflect the contribution from the Company’s core areas of operation: property and casualty insurance and life insurance. CFSL participates in these businesses through its ownership of Co-operators General Insurance Company (rated Pfd-3 (high); see separate press release) and Co-operators Life Insurance Company, and a majority stake in Addenda Capital Inc., a large institutional manager. The Company has been integrating systems to allow an improved customer experience, especially for those with multiple products with the group. The Company continues to expand in Ontario and Alberta and is striving to achieve a growing share in Québec where it has a smaller presence. The Company maintains strong ties to the Canadian co-operative movement to remain as the preferred financial services provider to this community.

While CFSL’s rating is limited by the corresponding ratings at its operating subsidiaries, the diversification of the Company’s consolidated product spectrum and distribution channels supports the rating. Conservative financial leverage is especially important, given the Company’s limited access to equity capital and the regulated nature of its major operating subsidiaries.

Notes:
All figures are in Canadian dollars unless otherwise noted.

The related regulatory disclosures pursuant to the National Instrument 25-101 Designated Rating Organizations are hereby incorporated by reference and can be found by clicking on the link to the right under Related Research or by contacting us at info@dbrs.com.

The applicable methodology is Rating Holding Companies and Their Subsidiaries.

This rating is endorsed by DBRS Ratings Limited for use in the European Union.