Canadian Underwriter

S&P’s assigns ‘A’ financial rating to Chartis Canada

July 25, 2012   by Canadian Underwriter

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Standard & Poor’s Services has assigned long-term ‘A’ counterparty credit and financial strength ratings to Canadian-based Chartis Insurance Company of Canada (Chartis Canada).

The outlook on the company is stable, S&P’s says.

“Chartis Canada is strongly capitalized with a capital redundancy above the rating level based on the Standard & Poor’s capital model,” the ratings agency announced on July 25.

“We view Chartis Canada’s competitive position as ‘strong.’ The company ranks sixth in overall commercial market share, with Top 5 or better position in lines comprising over 65% of its book in commercial property, liability, and accident and health.”

S&P’s also observed that Canada’s current market conditions could potentially limit the company’s financial performance.

“We believe Chartis Canada’s growth opportunities are somewhat constrained by the size of the Canadian market and the abundance of capacity due to the continuous entry of new competitors,” the ratings agency says. “While the Canadian insurance market remains profitable, we believe the competitive landscape will limit Chartis Canada’s market position in the next couple of years.”