AM Best Places Credit Ratings of Blue Cross Life Insurance Company of Canada Under Review with Negative Implications

OLDWICK, N.J.–(BUSINESS WIRE)–#insuranceAM Best has placed under review with negative implications the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of a- (Excellent) of Blue Cross Life Insurance Company of Canada (BCLIC) (Moncton, New Brunswick, Canada).

This Credit Rating (rating) action follows notification by the Ontario Securities Commission (OSC) that BCLIC’s recently selected Toronto-based investment manager, Bridging Finance Inc., is being investigated for mismanaging and misappropriating funds. BCLIC recently selected Bridging Finance Inc. to manage short-term fixed income assets for BCLIC and its shareholders/distributors. Of the amount BCLIC allocated to this manager, BCLIC believes that nearly 60% has been invested. PriceWaterhouseCoopers Inc. was appointed as the receiver of these assets, and the valuation of those is unknown at the present time.

The impact to BCLIC’s balance sheet will be offset materially as a result of its unique relationship with its shareholders/ distributors. However, AM Best notes that its assessments for the company’s overall balance sheet strength and enterprise risk management may be lowered prospectively as a result of this action, and that BCLIC’s business profile could be impacted due to potential reputational damage arising from this action.

AM Best will continue to monitor the situation closely. The ratings will remain under review until there is increased clarity regarding the OSC investigation and any impact to BCLIC and its shareholders.

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 media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media – Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.

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.

Copyright © 2021 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

Contacts

Frank Walko, CPA
Financial Analyst
+1 908 439 2200, ext. 5072
[email protected]

Rosemarie Mirabella
Director
+1 908 439 2200, ext. 5892
[email protected]

Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159
[email protected]

Jim Peavy
Director, Communications
+1 908 439 2200, ext. 5644
[email protected]

error: Content is protected !!