A.M. Best affirms Intact Insurance Group’s ‘A+’ rating

A.M. Best Co. has affirmed Intact Insurance Group’s financial strength rating of A+ (Superior) and issuer credit ratings (ICR) of “aa-“.
The Group includes Belair Insurance Company Inc. (Montreal, Quebec), Intact Insurance Company, Novex Insurance Company, The Nordic Insurance Company of Canada and Trafalgar Insurance Company of Canada.
A.M Best noted the group “benefits from advantages over its competitors in investment and claims management, as well as pricing and risk selection due to its experienced management team, superior size, geographic and product line diversification, multi-channel distribution network and sound catastrophe management.”
However, partially offsetting the strengths are the challenges faced from rapidly rising accident benefits claims in Ontario, soft commercial lines pricing, weather-related property claims, low interest rates and volatile equities markets, the ratings agency notes.
Additionally, the auto reforms, which go in to affect in September, have raised concerns about pricing, reserving and the impact on future earnings.