Rating agency puts Manulife grade under review
Insurance company rating agency A.M. Best Co. placed its grading on Manulife under review for a possible downgrade following the company's $6.4 billion hostile takeover bid for Canada Life.
A.M. Best currently has an A++ (Superior) rating its highest grading of financial strength on Manulife and several of its U.S. subsidiaries. The rating company has an A+(Superior) grade on Canada Life.
"While A.M. Best views this offer as a key component of Manulife's growth strategy to become a leading global financial services company, this transaction involves a firm with relatively weaker ratings and possible integration challenges inherent in an acquisition of a firm that has international businesses in markets which Manulife does not operate," the rating company said in a statement.
- FROM Dec. 9, 2002: Manulife bids $6.4 billion for Canada Life
Manulife's rating will stay under review while A.M. Best conducts discussions with the company's management on plans to integrate with Canada Life.