A.M. Best upgrades RSA Group of Canada to ‘A’

A.M. Best Co. has upgraded the financial strength ratings to ‘A’ (excellent) from ‘A-’ (excellent) of RSA Canada, Quebec Assurance Company and Western Assurance Company. Together, these companies form RSA Group of Canada.
The outlook for the ratings is stable.
“The rating actions on RSA Group of Canada reflect A.M. Best’s viewpoint that the group maintains strong risk-adjusted capitalization, solid investment income and sound reserve development,” an A.M. Best release says.
“The group has produced solid underwriting results, which have consistently increased equity over the last five years.”
The rating actions reflect Canada’s strong integration of systems and procedures with Royal & Sun Alliance Insurance Plc (RSA), as well as the Canadian subsidiary’s significant contribution to the European parent company’s overall profit, A.M. Best said.
Going forward, A.M. Best remains concerned about softening market conditions, fierce competition and the long-term benefits of regulated product reforms to auto insurance in the core operating territories of Ontario and Alberta.
“As a result, RSA Canada Group will be challenged to maintain current levels of profitability.”