A.M. Best upgrades Jevco’s financial strength rating to B++

A.M. Best Co. has upgraded the financial strength rating of Jevco Insurance Company (JIC) (Quebec) to B++ (Good) from B- (Fair).
The rating has been removed from the class of ‘under review with negative implications,’ and assigned a ‘stable’ outlook instead.
The new rating follows the Mar. 29, 2010 sale of JIC by Kingsway Financial Services Inc
(KFSI) (Ontario) to The Westaim Corporation (Westaim) (Ontario) (TSX: WED).
A.M. Best said its new rating and outlook reflects “JIC’s adequate capitalization, favorable operating performance pre-intercompany reinsurance and its recent acquisition by Westaim.
“These positive rating factors are partially offset by JIC’s negative earnings trend, soft commercial lines pricing and strong competitive market pressures.”
JIC’s positive rating factors “include various restructuring plans, cancellation and run off of non-core lines of business prior to the sale, the assumption of the business of its Canadian affiliate, Kingsway General Insurance Company’s (KGIC) business with JIC and the commutation of all inter-company reinsurance,” A.M. Best said in a release.
“The sale of JIC to Westaim helps to de-leverage its balance sheet and allows JIC to refocus efforts on underwriting its core business lines.”