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AM Best Comments on Credit Ratings of SSQ, Life Insurance Company Inc. Following Announced Merger With La Capitale Insurance & Financial Services Inc.

AM Best has commented that the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of "a" of SSQ, Life Insurance Company Inc. (SSQ) (Quebec, Canada) remain unchanged following SSQ’s recent announcement of its merger with La Capitale Insurance & Financial Services Inc. (La Capitale).

On Jan. 29, 2020, SSQ announced its decision to combine operations with La Capitale, a mutual insurer offering group, auto, home, life, and other coverages with a strong presence across Quebec. The new entity will be the largest mutual insurance company in Canada with approximately 4,700 employees, and more than 3.5 million members and clients. La Capitale and SSQ hope to realize operational efficiencies being mutual of a similar size and competing in the same geographic region. Combined assets under management for the newly created entity will total more than $20 billion CAD, and consolidated premiums will be worth approximately $5 billion CAD. No immediate changes will be made to either company’s operations, as regulatory and mutualist member approval is still required. The name and image of the new company are yet to be determined and once the business is in place, Jean St-Gelais, current chair of the board (COB) and chief executive of La Capitale, is expected to serve as COB of directors, and Jean-Francois Chalifoux, current CEO of SSQ, is expected to serve as CEO.

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 New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

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