AM Best Affirms Credit Ratings for Great-West Lifeco Inc. And Its Subsidiaries

OLDWICK, NJ — AM Best affirmed the Financial Strength Rating (FSR) of A+ (Superior) and Long-Term Issuer Credit Ratings (Long-Term ICRs) of “aa” (Superior) for Canada Life Assurance Company (Canada Life) (Winnipeg, Manitoba) and subsidiaries. At the same time, AM Best affirmed the Long-Term ICR of “a” (Excellent) and Long-Term Credit Ratings (Long-Term IRs) of Great-West Lifeco Inc. (Winnipeg, Manitoba). Additionally, AM Best affirmed a Long-Term ICR of “a” (Excellent) for LRG (US), Inc. (Delaware). The outlook for these credit ratings (ratings) is stable. (See below for a detailed list of affiliates and Long Term IRs.)

The ratings reflect the strength of Canada Life’s balance sheet, which AM Best assesses as very strong, as well as its strong performance, favorable business profile and sound corporate risk management. The group’s balance sheet strength continues to be maintained at a very strong level with risk-adjusted capitalization at a very strong level, as measured by Best’s Capital Adequacy Ratio (BCAR), and is further reflected in its Life Insurance Capital Adequacy Test score. Liquidity metrics and overall availability also remain favorable with Great-West’s access to large markets, major lines of credit in the United States. and Canada, and the lending power of the Federal Home Loan Bank.

The capitalization levels are supported by positive and well-segmented earnings from both a product and geographic perspective. The group maintains many competitive or leading positions in various product lines thanks to a large well-developed, multi-channel network. What slightly reduces these positive aspects is the possibility of issuing or increasing the country’s risks in the markets in which Great-West operates including Canada, the United States and Europe. However, AM Best notes that while the group may experience problems due to its global reach, greater diversification may limit risks compared to more focused peers.

The FSR of A+ (Superior) and the Long-Term ICRs of “aa” (Superior) are confirmed by the stable opinions of The Canada Life Assurance Company and its affiliates:

• Rating of the company Canada Life International Reinsurance Corporation Limited
• Canada Life Re Ireland Nominated Deeds Company
• Canadian Life Reinsurance Company
• London Life and Casualty (Barbados) Corporation
• London Life and Casualty Reinsurance Corporation
• Empower Annuity Insurance Company of America
• Epower Life & Annuity Insurance Company of New York
• Epower Annuity Insurance Company

The following Long Term IRs are confirmed with a stable outlook:

Great-West Lifeco Inc.
— “a” (Excellent) for EUR 500 million 1.75% senior unsecured loan, due in 2026
– “a” (Excellent) for CAD 500 million 3.337% senior unsecured debt, due 2028
– “a” (Excellent) for CAD 200 million 6.74% senior unsecured debt, due 2031
– “a” (Excellent) for CAD 400 million 6.67% senior unsecured debt, due 2033
– “a” (Excellent) for CAD 343.788 million 5.998% senior unsecured debt, due 2039
— “a” (Excellent) for CAD 600 million of 2.379% senior unsecured debt, due 2030
— “bbb+” (Good) on CAD 200 million 4.80% non-cumulative preferred stock
— “bbb+” (Good) for CAD 200 million 5.15% non-cumulative preferred stock
— “bbb+” (Good) for CAD 200 million 5.15% non-cumulative preferred stock
— “bbb+” (Good) on CAD 250 million 5.40% non-cumulative preferred stock
— “bbb+” (Good) on CAD 170 million 5.65% non-cumulative preferred stock
— “bbb+” (Good) on CAD 150 million 5.80% non-cumulative preferred stock
— “bbb+” (Good) on CAD 300 million 5.20% non-cumulative preferred stock
— “bbb+” (Good) for CAD 300 million 4.5% non-cumulative preferred stock
— “bbb+” (Good) on CAD 300 million 4.85% non-cumulative preferred stock
— “bbb+” (Good) on CAD 200 million 5.25% non-cumulative preferred stock
— “bbb+” (Good) on CAD 200 million 4.5% non-cumulative preferred stock

Great-West Lifeco Finance (Delaware) LP—
— “a” (Excellent) for USD 700 million 4.15% senior unsecured loan, due 2047

Great-West Lifeco Finance 2018, LP—
— “a” (Excellent) in USD 300 4.047% senior unsecured notes, due 2028
— “a” (Excellent) on USD 500 million 4.581% senior unsecured notes, due 2048

Canadian Life Assurance Company—
– “a+” (Excellent) on CAD 100 million 6.40% subordinated debt, due 2028

Canada Life Capital Trust—
— “a” (Excellent) for CAD 150 million 7.529 % non-cumulative preferred stock due 2052

Epower Finance 2020, LP—
— “a” (Excellent) on USD 400 million 1.357% senior unsecured notes, due 2027
— “a” (Excellent) on USD 400 million 1.776% senior unsecured notes, due 2031
— “a” (Excellent) on USD 700 million 3.075% senior unsecured notes, due 2051

The following Long-Term IRs reflect the securities available under shelf registration with a stable outlook:

Great-West Lifeco Inc.
— “a” (Excellent) in senior unsecured debt
— “a-” (Excellent) in subjunctive
— “bbb+” (Good) for subprime debt
— “bbb+” (Good) in preferred stock

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