March 12, 2012 by Canadian Underwriter
A.M. Best Co. has affirmed the financial strength rating (FSR) of ‘A’ (Excellent) of Royal & Sun Alliance Insurance Company of Canada (RSA Canada), Western Assurance Company and Quebec Assurance Company.
These members are together known as RSA Canadian Property/Casualty Pool (RSA Canadian Pool).
“The rating actions on RSA Canadian Pool reflect A.M. Best’s viewpoint that the pool maintains strong risk-adjusted capitalization, solid investment income and sound reserve development,” A.M. Best says in a press release. “The pool has produced solid underwriting results, which have consistently increased equity over the last five years, prior to stockholder dividends.”
In addition, A.M. Best has revised the outlook to positive from stable and affirmed the FSR of ‘B’ (Fair) of Canadian Northern Shield Insurance Company (CNS) (Vancouver, Canada).
“The ratings of CNS acknowledge its elevated underwriting leverage, high underwriting expenses and adequate operating performance,” A.M. Best said. “Its revised outlook represents RSA Group of Canada’s recent elevated commitment to CNS in the near term, particularly as it implements significant reinsurance protection.”
Concurrently, A.M. Best has affirmed the FSR of ‘B+’ of Ascentus Insurance Ltd., as well as the FSR of ‘B’ of Unifund Assurance Company (St. John’s, Canada).