
AM Best has affirmed the Financial Strength Rating (FSR) of A+ (Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of &#34;aa&#34; (Superior) of Sun Life Assurance Company of Canada (Sun Life) (Ontario, Canada)

AM Best has affirmed the Financial Strength Rating (FSR) of A+ (Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of "aa" (Superior) of Sun Life Assurance Company of Canada (Sun Life) (Ontario, Canada) and Sun Life and Health Insurance Company (U.S.) (Lansing, MI). These companies are the core insurance subsidiaries of Sun Life Financial Inc. (SLF) (Ontario, Canada) (NYSE:<a class="ticker" href="https://www.benzinga.com/quote/SLF">SLF</a>) (collectively referred to as Sun Life Group). Concurrently, AM Best has affirmed the Long-Term ICR of "a" (Excellent) and the Long-Term Issue Credit Ratings (Long-Term IRs) of SLF. The outlook of these Credit Ratings (ratings) is stable. (Please see below for a detailed listing of the Long-Term IRs.)


Additionally, AM Best has affirmed the FSR of A (Excellent) and the Long-Term ICR of "a" (Excellent) of Independence Life and Annuity Company (Independence) (Wilmington, DE), a strategic subsidiary of SLF. Lastly, AM Best has affirmed the FSR of B++ (Good) and the Long-Term ICR of "bbb+" (Good) of Professional Insurance Company (Dallas, TX), an SLF runoff subsidiary. The outlook of these ratings is stable.


The ratings reflect Sun Life Group's balance sheet strength, which AM Best assesses as strongest, as well as its strong operating performance, favorable business profile and very strong enterprise risk management (ERM).


The group has maintained a favorable level of risk-adjusted capitalization over the long term, as measured by Best's Capital Adequacy Ratio (BCAR) and the Canada regulator's Life Insurance Capital Adequacy Test (LICAT). The balance sheet is supported further by overall favorable operating earnings that are well-diversified by product and geography, strong liquidity metrics and a holding company that has the ability to provide additional financial flexibility. The group continues to hold dominant market positions in several lines within the Canadian, U.S. and Asian markets due in part to a robust ERM framework, which AM Best views as a competitive advantage.


The ratings of Independence reflect its balance sheet strength, which AM Best assesses as very strong, as well as its marginal operating performance, limited business profile, very strong ERM and support from its parental organization. The company continues to develop within the medical stop-loss insurance market, which it entered in 2020 after being in runoff prior to the strategic change. Premium growth remains moderate as the company continues to produce modest operating gains while attempting to achieve scale.


The ratings of Professional Insurance Company reflect its balance sheet strength, which AM Best assesses as very strong, as well as its marginal operating performance, very limited business profile, appropriate ERM and support from its parental organization. The company has operated as a runoff since 2010 and has been successful over that time frame in maintaining profitability, occasionally returning capital to the parent as insurance in force declines and excess risk-adjusted capital grows.


The following Long-Term IRs have been affirmed with stable outlooks:


Sun Life Financial Inc.—
 -- "a-" (Excellent) on CAD 1 billion, 2.58% subordinated debentures, due 2032
 -- "a-" (Excellent) on CAD 750 million, 2.06% subordinated debentures, due 2035
 -- "a-" (Excellent) on CAD 400 million, 5.40% subordinated debentures, due 2042
 -- "bbb+" (Good) on CAD 250 million, 4.45% Class A non-cumulative preferred stock, Series 3
 -- "bbb+" (Good) on CAD 300 million, 4.45% Class A non-cumulative preferred stock, Series 4
 -- "bbb+" (Good) on CAD 250 million, 4.50% Class A non-cumulative preferred stock, Series 5
 -- "bbb+" (Good) on CAD 222 million, 4.23% Class A non-cumulative preferred stock, Series 8R
 -- "bbb+" (Good) on CAD 58 million, floating rate Class A non-cumulative preferred stock, Series 9QR
 -- "bbb+" (Good) on CAD 171 million, 2.967% Class A non-cumulative preferred stock, Series 10R
 -- "bbb+" (Good) on CAD 29 million, floating rate Class A non-cumulative preferred shares, Series 11QR


Sun Life Assurance Company of Canada—
 -- "a+" (Excellent) on CAD 150 million, 6.30% subordinated debentures, Series 2, due 2028 (originally issued by Clarica Life Insurance Company)


Sun Life Capital Trust—
 -- "a" (Excellent) on CAD 200 million, 7.093% non-cumulative Sun Life Exchangeable Capital Securities, call date 2032


The following indicative Long-Term IRs have been affirmed with stable outlooks:


Sun Life Financial Inc.—
 -- "a" (Excellent) on senior unsecured debt
 -- "a-" (Excellent) on subordinated debt
 -- "bbb+" (Good) on preferred stock


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 <a xmlns="http://www.w3.org/1999/xhtml" rel="nofollow" href="https://cts.businesswire.com/ct/CT?id=smartlink&amp;url=http%3A%2F%2Fratings.ambest.com%2Fratingeventdisclosures.aspx&amp;esheet=54526582&amp;newsitemid=20260430878813&amp;lan=en-US&amp;anchor=Recent+Rating+Activity&amp;index=1&amp;md5=ea1456b5fdc2f04d742e866983d00e9e" shape="rect">Recent Rating Activity</a> web page. For additional information regarding the use and limitations of Credit Rating opinions, please view <a xmlns="http://www.w3.org/1999/xhtml" rel="nofollow" href="https://cts.businesswire.com/ct/CT?id=smartlink&amp;url=http%3A%2F%2Fwww3.ambest.com%2Fambv%2Fratingmethodology%2FOpenPDF.aspx%3Fri%3D1901&amp;esheet=54526582&amp;newsitemid=20260430878813&amp;lan=en-US&amp;anchor=Guide+to+Best%27s+Credit+Ratings&amp;index=2&amp;md5=e53e74a6b2c99419379fdc9ec42714e3" shape="rect">Guide to Best&#39;s Credit Ratings</a>. For information on the proper use of Best's Credit Ratings, Best's Performance Assessments, Best's Preliminary Credit Assessments and AM Best press releases, please view <a xmlns="http://www.w3.org/1999/xhtml" rel="nofollow" href="https://cts.businesswire.com/ct/CT?id=smartlink&amp;url=https%3A%2F%2Fwww.ambest.com%2Fratings%2Fguidetouse.pdf&amp;esheet=54526582&amp;newsitemid=20260430878813&amp;lan=en-US&amp;anchor=Guide+to+Proper+Use+of+Best%26%238217%3Bs+Ratings+%26amp%3B+Assessments&amp;index=3&amp;md5=684a83bffda7f1a65e051218c5b15c5c" shape="rect">Guide to Proper Use of Best's Ratings &amp; Assessments</a>.


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 London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit <a xmlns="http://www.w3.org/1999/xhtml" rel="nofollow" href="https://cts.businesswire.com/ct/CT?id=smartlink&amp;url=http%3A%2F%2Fwww.ambest.com%2F&amp;esheet=54526582&amp;newsitemid=20260430878813&amp;lan=en-US&amp;anchor=www.ambest.com&amp;index=4&amp;md5=967dbbfb64745a926111470cfb3e9ccd" shape="rect">www.ambest.com</a>.


Copyright &#xA9; 2026 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

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Kevin Varvaro 
 Senior Financial Analyst 
 +1 908 882 2410 
 <a xmlns="http://www.w3.org/1999/xhtml" rel="nofollow" href="mailto:kevin.varvaro@ambest.com" shape="rect">kevin.varvaro@ambest.com</a>


Kate Stefanelli 
 Associate Director 
 +1 908 882 2337 
 <a xmlns="http://www.w3.org/1999/xhtml" rel="nofollow" href="mailto:kate.stefanelli@ambest.com" shape="rect">kate.stefanelli@ambest.com</a>


Christopher Sharkey 
 Associate Director, Public Relations 
 +1 908 882 2310 
 <a xmlns="http://www.w3.org/1999/xhtml" rel="nofollow" href="mailto:christopher.sharkey@ambest.com" shape="rect">christopher.sharkey@ambest.com</a>


Al Slavin 
 Senior Public Relations Specialist 
 +1 908 882 2318 
 <a xmlns="http://www.w3.org/1999/xhtml" rel="nofollow" href="mailto:al.slavin@ambest.com" shape="rect">al.slavin@ambest.com</a>

AM Best Affirms Credit Ratings of Sun Life Financial Inc. and Its Subsidiaries

AM Best Affirms Strong Ratings for Sun Life Financial and Subsidiaries

<section class="insight" data-version="1">
 <section data-block="information">
 <h3>Information</h3>
 AM Best has affirmed the Financial Strength Rating (FSR) of A+ (Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of &amp;#34;aa&amp;#34; (Superior) of Sun Life Assurance Company of Canada (Sun Life) (Ontario, Canada)
 </section>

 <section data-block="ai-summary-paragraph">
 <h3>AI Summary</h3>
 AM Best has affirmed strong Financial Strength Ratings for Sun Life Financial Inc. and its subsidiaries, reflecting their robust balance sheet and operating performance. This stability provides a favorable outlook for SLF&#039;s market position, likely attracting investor confidence and supporting share price.
 </section>

 <section data-block="ai-summary-bullets">
 <h3>Key Points</h3>
 <ul><li>AM Best affirmed SLF&#039;s Financial Strength Rating at A+ and Long-Term ICR at &#039;aa&#039;.</li><li>Ratings reflect strong operating performance and robust enterprise risk management.</li><li>Independence Life&#039;s ratings remain strong despite marginal operating performance.</li><li>Professional Insurance Company operates as runoff, maintaining profitability since 2010.</li><li>Group retains dominant positions across insurance markets in Canada, U.S., and Asia.</li></ul>
 </section>

 <section data-block="companies-mentioned">
 <h3>Companies Mentioned</h3>
 <ul><li>Sun Life Financial Inc. (SLF): Reinforced ratings may boost confidence and attract investors.</li><li>Independence Life and Annuity Company (N/A): Subsidiary achieving scale in medical stop-loss may enhance overall growth.</li><li>Professional Insurance Company (N/A): Runoff strategy successfully maintaining profitability since 2010.</li></ul>
 </section>

 <section data-block="category">
 <h3>Corporate Developments</h3>
 This news falls under &#039;Corporate Developments&#039; as it pertains to credit ratings which directly affect investor confidence and financial stability metrics. Strengthened ratings generally lead to enhanced market trust and could correlate with stock price appreciation.
 </section>

 <section data-block="market-moving">
 <h3>Market-Moving</h3>
 <ul><li>Strengthened ratings could lead to increased institutional investment in SLF.</li><li>Positive outlook on insurance subsidiaries enhances SLF&#039;s market perception.</li><li>Favorable ratings may reduce borrowing costs, improving financial flexibility.</li><li>Continued profitability supports potential dividends and share buybacks.</li></ul>
 </section>

 <section data-block="key-facts">
 <h3>Key Facts</h3>
 <ul><li>SLF holds a Financial Strength Rating of A+ from AM Best.</li><li>Long-Term ICR for SLF affirmed at &#039;aa&#039; with a stable outlook.</li><li>Independence Life rated &#039;A&#039; (Excellent); Professional Insurance Company rated &#039;B++&#039; (Good).</li><li>SLF maintains a favorable risk-adjusted capitalization level according to AM Best.</li></ul>
 </section>

 <section data-block="trading-thesis">
 <h3>Trading Thesis</h3>
 Buy SLF, as affirmations of ratings reinforce financial stability; expect price appreciation in the next quarter.
 </section>
</section>



AM Best has affirmed the Financial Strength Rating (FSR) of A+ (Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of "aa" (Superior) of Sun Life Assurance Company of Canada (Sun Life) (Ontario, Canada) and Sun Life and Health Insurance Company (U.S.) (Lansing, MI). These companies are the core insurance subsidiaries of Sun Life Financial Inc. (SLF) (Ontario, Canada) (NYSE:<a class="ticker" href="https://www.benzinga.com/quote/SLF">SLF</a>) (collectively referred to as Sun Life Group). Concurrently, AM Best has affirmed the Long-Term ICR of "a" (Excellent) and the Long-Term Issue Credit Ratings (Long-Term IRs) of SLF. The outlook of these Credit Ratings (ratings) is stable. (Please see below for a detailed listing of the Long-Term IRs.)


Additionally, AM Best has affirmed the FSR of A (Excellent) and the Long-Term ICR of "a" (Excellent) of Independence Life and Annuity Company (Independence) (Wilmington, DE), a strategic subsidiary of SLF. Lastly, AM Best has affirmed the FSR of B++ (Good) and the Long-Term ICR of "bbb+" (Good) of Professional Insurance Company (Dallas, TX), an SLF runoff subsidiary. The outlook of these ratings is stable.


The ratings reflect Sun Life Group's balance sheet strength, which AM Best assesses as strongest, as well as its strong operating performance, favorable business profile and very strong enterprise risk management (ERM).


The group has maintained a favorable level of risk-adjusted capitalization over the long term, as measured by Best's Capital Adequacy Ratio (BCAR) and the Canada regulator's Life Insurance Capital Adequacy Test (LICAT). The balance sheet is supported further by overall favorable operating earnings that are well-diversified by product and geography, strong liquidity metrics and a holding company that has the ability to provide additional financial flexibility. The group continues to hold dominant market positions in several lines within the Canadian, U.S. and Asian markets due in part to a robust ERM framework, which AM Best views as a competitive advantage.


The ratings of Independence reflect its balance sheet strength, which AM Best assesses as very strong, as well as its marginal operating performance, limited business profile, very strong ERM and support from its parental organization. The company continues to develop within the medical stop-loss insurance market, which it entered in 2020 after being in runoff prior to the strategic change. Premium growth remains moderate as the company continues to produce modest operating gains while attempting to achieve scale.


The ratings of Professional Insurance Company reflect its balance sheet strength, which AM Best assesses as very strong, as well as its marginal operating performance, very limited business profile, appropriate ERM and support from its parental organization. The company has operated as a runoff since 2010 and has been successful over that time frame in maintaining profitability, occasionally returning capital to the parent as insurance in force declines and excess risk-adjusted capital grows.


The following Long-Term IRs have been affirmed with stable outlooks:


Sun Life Financial Inc.—
 -- "a-" (Excellent) on CAD 1 billion, 2.58% subordinated debentures, due 2032
 -- "a-" (Excellent) on CAD 750 million, 2.06% subordinated debentures, due 2035
 -- "a-" (Excellent) on CAD 400 million, 5.40% subordinated debentures, due 2042
 -- "bbb+" (Good) on CAD 250 million, 4.45% Class A non-cumulative preferred stock, Series 3
 -- "bbb+" (Good) on CAD 300 million, 4.45% Class A non-cumulative preferred stock, Series 4
 -- "bbb+" (Good) on CAD 250 million, 4.50% Class A non-cumulative preferred stock, Series 5
 -- "bbb+" (Good) on CAD 222 million, 4.23% Class A non-cumulative preferred stock, Series 8R
 -- "bbb+" (Good) on CAD 58 million, floating rate Class A non-cumulative preferred stock, Series 9QR
 -- "bbb+" (Good) on CAD 171 million, 2.967% Class A non-cumulative preferred stock, Series 10R
 -- "bbb+" (Good) on CAD 29 million, floating rate Class A non-cumulative preferred shares, Series 11QR


Sun Life Assurance Company of Canada—
 -- "a+" (Excellent) on CAD 150 million, 6.30% subordinated debentures, Series 2, due 2028 (originally issued by Clarica Life Insurance Company)


Sun Life Capital Trust—
 -- "a" (Excellent) on CAD 200 million, 7.093% non-cumulative Sun Life Exchangeable Capital Securities, call date 2032


The following indicative Long-Term IRs have been affirmed with stable outlooks:


Sun Life Financial Inc.—
 -- "a" (Excellent) on senior unsecured debt
 -- "a-" (Excellent) on subordinated debt
 -- "bbb+" (Good) on preferred stock


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 <a xmlns="http://www.w3.org/1999/xhtml" rel="nofollow" href="https://cts.businesswire.com/ct/CT?id=smartlink&amp;url=http%3A%2F%2Fratings.ambest.com%2Fratingeventdisclosures.aspx&amp;esheet=54526582&amp;newsitemid=20260430878813&amp;lan=en-US&amp;anchor=Recent+Rating+Activity&amp;index=1&amp;md5=ea1456b5fdc2f04d742e866983d00e9e" shape="rect">Recent Rating Activity</a> web page. For additional information regarding the use and limitations of Credit Rating opinions, please view <a xmlns="http://www.w3.org/1999/xhtml" rel="nofollow" href="https://cts.businesswire.com/ct/CT?id=smartlink&amp;url=http%3A%2F%2Fwww3.ambest.com%2Fambv%2Fratingmethodology%2FOpenPDF.aspx%3Fri%3D1901&amp;esheet=54526582&amp;newsitemid=20260430878813&amp;lan=en-US&amp;anchor=Guide+to+Best%27s+Credit+Ratings&amp;index=2&amp;md5=e53e74a6b2c99419379fdc9ec42714e3" shape="rect">Guide to Best&#39;s Credit Ratings</a>. For information on the proper use of Best's Credit Ratings, Best's Performance Assessments, Best's Preliminary Credit Assessments and AM Best press releases, please view <a xmlns="http://www.w3.org/1999/xhtml" rel="nofollow" href="https://cts.businesswire.com/ct/CT?id=smartlink&amp;url=https%3A%2F%2Fwww.ambest.com%2Fratings%2Fguidetouse.pdf&amp;esheet=54526582&amp;newsitemid=20260430878813&amp;lan=en-US&amp;anchor=Guide+to+Proper+Use+of+Best%26%238217%3Bs+Ratings+%26amp%3B+Assessments&amp;index=3&amp;md5=684a83bffda7f1a65e051218c5b15c5c" shape="rect">Guide to Proper Use of Best's Ratings &amp; Assessments</a>.


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 London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit <a xmlns="http://www.w3.org/1999/xhtml" rel="nofollow" href="https://cts.businesswire.com/ct/CT?id=smartlink&amp;url=http%3A%2F%2Fwww.ambest.com%2F&amp;esheet=54526582&amp;newsitemid=20260430878813&amp;lan=en-US&amp;anchor=www.ambest.com&amp;index=4&amp;md5=967dbbfb64745a926111470cfb3e9ccd" shape="rect">www.ambest.com</a>.


Copyright &#xA9; 2026 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

<img xmlns="http://www.w3.org/1999/xhtml" alt="" src="https://cts.businesswire.com/ct/CT?id=bwnews&amp;sty=20260430878813r1&amp;sid=benz2&amp;distro=nx&amp;lang=en" style="width:0;height:0"></img>View source version on businesswire.com: <a xmlns="http://www.w3.org/1999/xhtml" href="https://www.businesswire.com/news/home/20260430878813/en/" rel="nofollow">https://www.businesswire.com/news/home/20260430878813/en/</a>
Kevin Varvaro 
 Senior Financial Analyst 
 +1 908 882 2410 
 <a xmlns="http://www.w3.org/1999/xhtml" rel="nofollow" href="mailto:kevin.varvaro@ambest.com" shape="rect">kevin.varvaro@ambest.com</a>


Kate Stefanelli 
 Associate Director 
 +1 908 882 2337 
 <a xmlns="http://www.w3.org/1999/xhtml" rel="nofollow" href="mailto:kate.stefanelli@ambest.com" shape="rect">kate.stefanelli@ambest.com</a>


Christopher Sharkey 
 Associate Director, Public Relations 
 +1 908 882 2310 
 <a xmlns="http://www.w3.org/1999/xhtml" rel="nofollow" href="mailto:christopher.sharkey@ambest.com" shape="rect">christopher.sharkey@ambest.com</a>


Al Slavin 
 Senior Public Relations Specialist 
 +1 908 882 2318 
 <a xmlns="http://www.w3.org/1999/xhtml" rel="nofollow" href="mailto:al.slavin@ambest.com" shape="rect">al.slavin@ambest.com</a>

AM Best has affirmed strong Financial Strength Ratings for Sun Life Financial Inc. and its subsidiaries, reflecting their robust balance sheet and operating performance. This stability provides a favorable outlook for SLF's market position, likely attracting investor confidence and supporting share price.

AM Best Affirms Credit Ratings of Sun Life Financial Inc. and Its Subsidiaries

AI Summary

Sentiment Rationale

Trading Thesis

Market-Moving

Key Facts

Companies Mentioned

Corporate Developments

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