2011-02-08 17:45:15 -

A.M. Best Co. has affirmed the financial strength rating of B++ (Good) and issuer credit rating (ICR) of “bbb” of Jevco Insurance Company (Jevco) (Quebec). Concurrently, A.M. Best has affirmed the ICR of “bb” of Jevco’s publicly traded parent, The Westaim Corporation (Westaim) (Ontario) (TSX: WED). The outlook for all ratings is stable.

The ratings and outlook of Jevco reflect its adequate risk-adjusted capitalization, favorable operating performance and market expertise as it refocuses on underwriting core business lines. In addition, the rating reflects the benefits derived from the financial flexibility and explicit support of Westaim.

These positive rating factors are partially offset by soft commercial lines pricing, strong competitive market pressures and volatility, especially in the Ontario non-standard auto markets. In addition,

although there are potential legacy reserve issues with Jevco being a former subsidiary of Kingsway Financial Services, Inc., A.M. Best anticipates that the residual financial effects of Kingsway Financial will become less material in time. However, the potential exists for pressure on risk-adjusted capitalization if there is significant adverse reserve development in the near term on legacy business or if premium growth significantly exceeds projections.

The rating of Westaim is based on the overall financial strength of Jevco, its main operating company in Canada.

The principal methodology used in determining these ratings is Best’s Credit Rating Methodology -- Global Life and Non-Life Insurance Edition : cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww .. , which provides a comprehensive explanation of A.M. Best’s rating process and highlights the different rating criteria employed. Additional key criteria utilized include: “Risk Management and the Rating Process for Insurance Companies”; “Catastrophe Risk Management Incorporated Within the Rating Analysis”; and “Understanding BCAR for Canadian Property/Casualty Insurers.” Methodologies can be found at www.ambest.com/ratings/methodology : cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww .. .


Founded in 1899, A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com : cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww .. .

Copyright © 2011 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.

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A.M. Best Co.Jacqalene Catrino, 908-439-2200, ext. 5762Financial
Analyst jacqalene.catrino@ambest.com : mailto:jacqalene.catrino@ambest.com orJeffrey

Mango, CPA, 908-439-2200, ext. 5204Assistant Vice President jeffrey.mango@ambest.com : mailto:jeffrey.mango@ambest.com orRachelle
Morrow, 908-439-2200, ext. 5378Senior Manager, Public
Relations rachelle.morrow@ambest.com : mailto:rachelle.morrow@ambest.com orJim

Peavy, 908-439-2200, ext. 5644Assistant Vice President,
Public Relations james.peavy@ambest.com : mailto:james.peavy@ambest.com