2013-02-27 19:18:28 -

A.M. Best Co. has revised the outlook to positive from stable and affirmed the financial strength rating of B+ (Good) and issuer credit rating of "bbb-" of Peace Hills General Insurance Company (Peace Hills) (Alberta).

The positive outlook reflects Peace Hills' improved risk-adjusted capitalization over the last three years and A.M. Best’s expectation that this trend will continue. The outlook further recognizes that the company's operating performance will continue to benefit from management’s underwriting discipline and prudent reinsurance program.

The affirmations of the ratings are reflective of Peace Hills’ good risk-adjusted capitalization, good balance sheet liquidity, improved common stock leverage and local market expertise. These positive rating factors are partially offset by strong competitive market pressures and a recent trend of more

frequent and severe weather-related events across Canada.

Peace Hills' ratings could further benefit from producing a consistently favorable earnings trend, while maintaining strong risk-adjusted capitalization. However, the ratings and outlook may come under negative pressure if an unfavorable earnings trend develops and its capital erodes.

The methodology used in determining these ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of A.M.

Best’s rating process and contains the different rating criteria employed in the rating process. Key criteria utilized include: “Risk Management and the Rating Process for Insurance Companies” and “Understanding BCAR for Canadian Property/Casualty Insurers.” Best’s Credit Rating Methodology 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 © 2013 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.

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

Morrow, 908-439-2200, ext. 5378Senior Manager, Public
Relations rachelle.morrow@ambest.com : mailto:rachelle.morrow@ambest.com orGreg

Williams, 908-439-2200, ext. 5815Managing Senior Financial
Analyst greg.williams@ambest.com : mailto:greg.williams@ambest.com orJim

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