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). 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 maintains the strongest level of risk-adjusted capitalization as measured by Best's Capital Adequacy Ratio (BCAR). TD Re also implicitly benefits from the financial strength and well-respected name of its ultimate parent, The Toronto-Dominion Bank (TD Bank), as evidenced by the parent’s prior record of capital support through internal loans and other inter-company agreements. TD Re maintains a formal risk appetite statement, which has evolved to incorporate greater diversification of assumed business. The reinsurer carries out stress testing under an economic capital approach, under which capital is managed according to reported IFRS equity exceeding a conditional tail expectation measure at a defined confidence level.
