A.M. Best Affirms Ratings of Members of SGI CANADA Group; Revises Outlook to Stable for Insurance Company of Prince Edward Island
2012-11-28 19:30:31 -
A.M. Best Co. has affirmed the financial strength rating (FSR) of A- (Excellent) and issuer credit rating (ICR) of “a-” of SGI CANADA Insurance Services Limited (SCISL) (Saskatchewan) and its wholly owned subsidiary, Coachman Insurance Company (Coachman) (Ontario). A.M. Best also has affirmed the FSR of A- (Excellent) and ICR of “a-” of SCISL’s operating parent, SGI CANADA (Saskatchewan).
companies are members of the SGI CANADA Group. The outlook for all ratings remains stable.
In addition, A.M. Best has affirmed the FSR of B++ (Good) and ICR of “bbb” of The Insurance Company of Prince Edward Island (ICPEI), a majority owned subsidiary of SCISL. The outlook on ICPEI’s ratings has been revised to stable from negative.
The ratings of the members of SGI CANADA Group are reflective of the group’s excellent risk-adjusted capitalization and sound balance sheet liquidity, consistently profitable operating performance, overall geographic and product line diversification as well as the benefits its derives from strong centralized management and consolidated support functions such as financial reporting, reinsurance procurement and investment management. In addition, SGI CANADA maintains significant market share dominance in its home province of Saskatchewan.
These rating strengths are offset in part by challenges the group faces from strong competition for market share and the impact of more frequent and severe weather-related events.
The ratings of ICPEI reflect its leadership position among the top five property/casualty insurance companies in Prince Edward Island and the implicit support it receives from its stronger parent. The stable outlook is reflective of improved operating performance and risk-adjusted capitalization.
The ratings of the members of SGI CANADA and ICPEI could benefit from a consistently favorable earnings trend while maintaining strong risk-adjusted capitalization. However, the ratings would come under downward pressure if an unfavorable earnings trend develops or risk-adjusted capitalization no longer supports underwriting risk.
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”; “Understanding BCAR for Canadian Property/Casualty Insurers”; and “Rating Members of Insurance Groups.” 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 ..
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