A.M. Best Affirms Ratings of TD Reinsurance (Barbados) Inc.

OLDWICK, N.J.--(Business Wire)--
A.M. Best Co. has affirmed the financial strength rating of A (Excellent) and
issuer credit rating (ICR) of "a" of TD Reinsurance (Barbados) Inc. (TD Re)
(Barbados). The rating outlook is stable.

TD Re is a life reinsurer that is ultimately owned by The Toronto-Dominion Bank
(TD Bank) (Toronto, Ontario), the second-largest commercial bank in Canada by
assets. TD Re principally reinsures credit insurance policies underwritten by
third-party life insurance carriers on consumer loans originated by the Canadian
retail branches of TD Canada Trust; retrocedes those Canadian risks to several
unaffiliated reinsurers; and accepts non-Canadian risks of a similar nature from
those unaffiliated reinsurers.

The ratings acknowledge TD Re's solid capitalization relative to its current
investment and insurance risks accepted, the consistent growth in earnings and
strong liquidity for the likely level of insurance payouts. TD Re's financial
strength and positive operating trends are based upon a focused strategy on its
core creditor life business and conservative investment practices. The
investment portfolio is comprised of high quality sovereign, corporate and
supranational bonds and the company has not written down any investments.

While recognizing the solid market position of TD Bank and the persistency of
premiums from multi-year policies, A.M. Best notes that growth depends upon the
rate of new originations in Canada, the United Kingdom and the rest of Europe.
A.M. Best believes that decreases in consumer loan activity in Canada and Europe
could adversely impact the associated opportunities to sell credit insurance,
although TD Re is well positioned to profitably grow over the long term. The
ratings also consider the challenge in balancing capitalization with external
pressures.

For Best`s Ratings, an overview of the rating process and rating methodologies,
please visit www.ambest.com/ratings.

The principal methodologies used in determining these ratings, including any
additional methodologies and factors that may have been considered, can be found
at www.ambest.com/ratings/methodology.

Founded in 1899, A.M. Best Company is a global full-service credit rating
organization dedicated to serving the financial and health care service
industries, including insurance companies, banks, hospitals and health care
system providers. For more information, visit www.ambest.com.

A.M. Best Co.
Analysts
Richard Baldwin, 908-439-2200, ext. 5664
richard.baldwin@ambest.com
or
William Pargeans, 908-439-2200, ext. 5359
william.pargeans@ambest.com
or
Public Relations
Jim Peavy,908-439-2200, ext. 5644
james.peavy@ambest.com
or
Rachelle Morrow,908-439-2200, ext. 5378
rachelle.morrow@ambest.com

Copyright Business Wire 2009