AM Best Affirms Credit Ratings of TD Reinsurance (Barbados) Inc.

AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a+” (Excellent) of TD Reinsurance (Barbados) Inc. (TD Re) (Barbados). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect TD Re’s balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management.

TD Re is owned ultimately by The Toronto-Dominion Bank (TD Bank), which is among the leading banks in Canada, as measured by market capitalization. The parent bank is a strong organization with approximately CAD 112 billion of IFRS equity at financial year-end 2023 and CAD 2 trillion in assets. In addition, the bank earned approximately CAD 10.2 billion in net income on CAD 50.5 billion in revenue in fiscal-year 2023. AM Best notes that given the parent’s prior history of capital support provided to TD Re through internal loans, TD Bank may at its discretion provide additional support should TD Re need it. In fiscal-year 2024, AM Best notes that TD Re may for a few quarters moderately reduce the dividends upstreamed to its parent company, to enhance its level of available capital and maintain its risk-adjusted capitalization after transitioning to IFRS17.

The stable outlooks reflect TD Re’s very strong overall balance sheet strength assessment that has been maintained over the long term supported by consistently strong operating performance. The company’s favorable operating return on equity on a longstanding basis provides significant support to the balance sheet and reflects TD Re’s appropriate underwriting practices in its Canadian property/casualty, creditor life, and European longevity reinsurance products.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

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