A.M. Best has affirmed the ratings of Manitoba's Grain Insurance Company, boosting their outlook from negative to stable.
The company now holds a financial strength rating (FSR) of "A," or excellent and an issuer credit rating (ICR) of "a."
"The rating affirmations are supported by Grain's consistently solid operating performance, favorable reserve development, on both an accident and calendar year basis, its long-standing market presence, historically steady investment stream and seasoned management team," A.M. Best noted.
However, recent drop in Grain’s surplus, continued competitive pricing pressures throughout Canada, particularly in commercial lines, affecting rate adequacy in the market, as well as the company's susceptibility to catastrophic events in the territories in which it writes have affected positive rating factors, it added.
"Management continues to monitor and improve performance, underwriting guidelines and rate adequacy," the rating agency noted. "The management team continues to demonstrate its ability to effectively operate through various insurance cycles and a rapidly changing investment market."