A.M. Best Affirms Ratings of TD Reinsurance (Barbados) Inc.

OLDWICK, N.J. -- A.M. Best Co. has affirmed the financial strength rating of A (Excellent) and the issuer credit rating of "a" of TD Reinsurance (Barbados) Inc. (TD Re). The outlook for both ratings is stable.

The ratings reflect TD Re's consistently strong operating performance,

The company's financial strength is supported by its superior operating returns, disciplined underwriting, a strategy focused on its core life and health business and adherence to sound investment practices, resulting in strong annual earnings growth. Although capital and surplus growth have been tempered by stockholder dividends, TD Re maintains a capital position that adequately supports its life reinsurance activities. Furthermore, the company's superior underwriting results and liquidity position are sustained by management's conservative operating philosophy and a balance sheet supported by a portfolio of high quality assets.

Although TD Re has strong operating fundamentals, A.M. Best believes the company may be affected by fluctuations and competitive pressures that exist in its core life and health business. Additionally, portfolio returns continue to be limited by the current investment environment, and the highly competitive nature of the life reinsurance marketplace may pressure future earnings growth and present challenges to superior financial performance in the future. Management has addressed these issues proactively by expanding its list of treaty partners and selectively adding new products to complement current credit product offerings.

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A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. For more information, visit A.M. Best's Web site at www.ambest.com.