AM Best Upgrades Credit Ratings of Fidelity Life Association, A Legal Reserve Life Insurance Company; Affirms Credit Ratings of Industrial Alliance Insurance and Financial Services Inc. and Its Life/Health Subsidiaries
OLDWICK, N.J., October 16, 2026--AM Best has upgraded the Financial Strength Rating (FSR) to A (Excellent) from A- (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) to "a" (Excellent) from "a-" (Excellent) to Fidelity Life Association, A Legal Reserve Life Insurance Company (Fidelity) a new member of IA American Life Group (IAALG). The outlook of these Credit Ratings (ratings) has been revised to stable from positive. Concurrently, AM Best has affirmed FSR of A+ (Superior) and the Long-Term ICRs of "aa-" (Superior) of Industrial Alliance Insurance and Financial Services Inc. (IA) (Quebec, Canada). In addition, AM Best has affirmed the FSR of A (Excellent) and the Long-Term ICRs of "a" (Excellent) of IA's U.S. life insurance entities within IAALG. The outlook of these ratings is stable. (See below for a listing of companies.)
The ratings of IA reflect its balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, favorable business profile and appropriate enterprise risk management (ERM).
IA continues to maintain a favorable level of risk-adjusted capitalization, as measured by Best's Capital Adequacy Ratio (BCAR), which is supported by consistently stable operating earnings which have demonstrated a trend of growth over the long term. The company is a major player in Canada's market with leading or competitive market positions in several product lines, including segregated funds and individual insurance by policy count. Its ERM framework is considered embedded across its operations, which has resulted in relatively conservative assumptions and reserving reported historically.
The ratings of IAALG reflect its balance sheet strength, which AM Best assesses as very strong, as well as its marginal operating performance, neutral business profile and appropriate ERM.
The U.S. group continues to maintain an extremely conservative investment portfolio with most of its holdings being investment-grade public bonds. In line with management expectations, statutory earnings volatility has occurred in recent years due partly to enhancing scale through sales and distribution growth. The addition of Fidelity to the group follows the acquisition of its parent company, Vericity Inc., in 2024, with its integration into the greater group over the last two years. It is expected that Fidelity, along with its digital agency, will help continue the expansion of the U.S. group of companies in the coming years.