All trends are Stable.
KEY RATING CONSIDERATIONS
The rating confirmations reflect PWF's excellent franchise in life insurance and asset management across several key markets in
RATING DRIVERS
PWF's ratings reflect those of its main subsidiary, GWO. An upgrade of GWO's ratings could potentially benefit PWF's ratings. Conversely, negative rating pressure could result from a significant deterioration in the creditworthiness of GWO or
RATING RATIONALE
The confirmations of the Company's ratings result from the application of DBRS Morningstar's 'Global Methodology for Rating Life and P&C Insurance Companies and Insurance Organizations' (the Global Insurance Methodology), which was used to confirm the Issuer Rating of GWO, the largest contributor to the Company's earnings and overall strength with a share of approximately 72% in PWF's earnings. Therefore, the primary methodology used to rate GWO, the Global Insurance Methodology, is also the primary methodology used to rate PWF. The methodology for rating IGM, 'Rating Companies in the Asset Management Industry,' is also used in the PWF rating. The diversification and overall strength of the Company's combined subsidiaries, in addition to the assessment of the financial strength of the PWF legal entity, have prompted DBRS Morningstar to conclude that the sum of the parts is sufficiently strong enough for PWF's Issuer Rating to be at the same level as GWO's.
PWF is a corporate holding company controlling two major Canadian financial services providers: GWO, the largest Canadian life insurance operation, and IGM,
PFW's rating confirmations also reflect the Company's strong free cash flow generation capacity that, in turn, support its creditworthiness and debt service capacity. PWF's debt service coverage ratio (including dividend obligations on its preferred shares) remains excellent at 15.6 times as at the nine months ended
Notes:
All figures are in Canadian dollars unless otherwise noted.
The principal methodologies are DBRS Morningstar Criteria: Rating Corporate Holding Companies and Parent/Subsidiary Rating Relations (
The related regulatory disclosures pursuant to the National Instrument 25-101 Designated Rating Organizations are hereby incorporated by reference and can be found on the issuer page at www.dbrs.com.
The rated entity or its related entities did participate in the rating process for this rating action. DBRS Morningstar had access to the accounts and other relevant internal documents of the rated entity or its related entities in connection with this rating action.
For more information on this credit or on this industry, visit www.dbrs.com.
Ratings
Date Issued Debt Rated Action Rating Trend Issued
i
US =
CA = Canada Issued, NRSRO
EU = EU Issued, NRSRO
E = EU endorsed
Unsolicited Participating With Access
Unsolicited Participating Without Access
Unsolicited Non-Participating
27-Nov-19 Issuer Rating Confirmed A (high) Stb CA
27-Nov-19 Senior Debentures Confirmed A (high) Stb CA
27-Nov-19 Cumulative First Preferred Shares (Series A) Confirmed Pfd-2 (high) Stb CA
27-Nov-19 Non-Cumulative First Preferred Shares Confirmed Pfd-2 (high) Stb CA
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