S&P: Industrial Alliance outlook stable

Standard & Poor's said it revised its outlook on Industrial Alliance Insurance and Financial Services Inc. to stable from negative and affirmed the A+ counterparty credit and financial strength ratings on the company.

The agency said it revised the outlook to reflect its assessment that the potential for lower operating earnings and higher reserve and capital requirements because of the company's sensitivity to equity market levels has diminished sufficiently. As of June 30, the company's solvency ratio was 224%, and S&P said the S&P/TSX index would have to decline almost to 7,566 before Industrial Alliance's solvency ratio would slip below its stated minimum target of 175%.

The ratings on Industrial Alliance reflect its competitive advantages as one of Canada's top four life insurers and its solid and well-diversified franchise position in the Canadian market, the agency said.

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