WELLESLEY, Mass., Oct. 17, 2013 /PRNewswire/ -- Delaware Life today received confirmation of an A- (Excellent) financial strength rating, along with a negative future outlook, from A.M. Best as part of a review of Sun Life Assurance Company of Canada (U.S.).
In a statement, A.M. Best explained that the confirmed ratings reflect Delaware Life's "more than adequate risk-adjusted capitalization, improved credit quality of its investment portfolio, and evolving business profile that could lead to increased growth and positive operating results."
While the A.M. Best statement noted that Delaware Life's current blocks of annuity and bank-owned life insurance business expose the organization to some equity and interest rate risk, the firm also acknowledged Delaware Life's plans to revitalize distribution channels and pursue new fixed and variable annuity products to generate additional sales opportunities moving forward.
Delaware Life President David Sams reinforced the organization's strong financial position, and pointed out that Delaware Life leaders are committed to ongoing engagement with financial ratings agencies to provide additional background on the organization's strategy and focus on delivering compelling new options in the annuities and life insurance markets.
"As we continue to demonstrate our financial strength, we are pleased with A.M. Best's rating of our organization," Sams said. "Delaware Life is a financially strong and well-capitalized organization. As we raise awareness about our organization and share our future plans to serve both current and new policyholders, we are confident that ratings outlooks will continue to improve."
Today, Delaware Life has approximately $1.3 billion in capital, and risk-based capital levels are approximately 450 percent. The new organization supports about 450,000 policies, representing more than $40 billion of in-force business.
About Delaware Life
Delaware Life is a leading provider of annuity and life insurance products in the U.S. The organization currently manages about 450,000 in-force policies, including variable annuity, fixed annuity and fixed index annuity products, as well as variable life insurance products, including corporate and bank-owned variable life.
Delaware Life was established in August 2013 with the purchase of the domestic U.S. annuity business and certain life and corporate market insurance businesses of Sun Life Financial Inc. (TSX: SLF) (NYSE: SLF). Approximately 500 former Sun Life employees have joined Delaware Life, serving policyholders from facilities in Wellesley, Mass., as well as Waterford, Ireland, and Lethbridge, Alberta, Canada.
The terms and conditions of all Sun Life contracts and policies remain in-force and unchanged under Delaware Life.
SOURCE Delaware Life