A.M. Best upgrades Optimum General Insurance Group

A.M. Best Co. has upgraded Optimum General Insurance Group (Canada)’s financial strength rating to B+ (good) from B (fair).
Optimum General Insurance Group consists of Optimum Insurance Company Inc., its wholly-owned subsidiary, Optimum Farm Insurance Inc. (both of Montreal, Quebec) and Optimum West Insurance Company (Vancouver, British Columbia).
The outlook for the rating is stable, an A.M. Best release says.
“These rating actions reflect the group’s improved capitalization, consistent operating results and favourable reserve development on both an accident and calendar year basis,” the release says. “The improved results are derived by the group’s consistent net investment income and favourable underwriting income.”
As a result, additions to surplus have been reported for five consecutive years, and the group has benefited from management’s implementation of corrective actions to improve performance, tighten underwriting guidelines and improved rate adequacy, it continues.
“Partially offsetting these positive factors are competitive pricing pressure, particularly in commercial lines, rate adequacy within the market and the group’s inherent exposure to frequent and severe weather-related events.”