A.M. Best concludes review of GCAN after RSA Canada acquisition, affirms excellent strength rating

A.M. Best Co. has removed the issuer credit rating (ICR) of “a+” from under review with negative implications and affirmed the ICR and the financial strength rating of ‘A’ (Excellent) of GCAN Insurance Company (GCAN).
The outlook for both ratings is stable.
The rating actions follow the recent acquisition of GCAN by Roins Financial Services Limited (RFSL), a Canadian holding company whose ultimate parent is RSA Insurance Group plc (RSA).
“GCAN has consistently outperformed the overall industry from an operating ratio perspective during the latest five-year period,” A.M. Best noted.
“The company maintains excellent reserve development, as evidenced by consistent redundancies on both an accident and calendar year basis, underpinned by the company’s continuing philosophy to prudently manage all aspects of the business and maintain a disciplined approach to underwriting for its long-term success.”
The soft market conditions in the Canadian commercial lines segment partially offsets theses strengths, A.M. Best added, although “the company is well positioned to withstand existing soft market conditions based on management’s historically conservative focus on profitability.”