Canadian Underwriter

CGU responds to A.M. Best withdrawal of ratings

December 11, 2002   by Canadian Underwriter

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CGU Group Canada Ltd., the Canadian arm of the global Aviva plc. Insurance group, issued a media statement clarifying its decision to withdraw from A.M. Best’s rating services. A.M. Best issued a statement on Monday of this week indicating that the financial strength ratings of the CGU Group and its subsidiary companies of "A (excellent)" had been withdrawn. The rating agency says, "this rating action is in response to the request from CGU’s management to withdraw from the interactive rating process".
CGU notes that, being a part of the Aviva group which uses Standard & Poor’s as its primary rating agency, there did not seem to any reason to utilize a second rating agency. "CGU does not believe there is a need to maintain two ratings and have therefore decided not to renew this interactive rating engagement with A.M. Best." CGU notes that its Canadian subsidiaries Traders General Insurance Co., Scottish & York Insurance Co. Ltd. and Elite Insurance Co. all hold "AA-" ratings from Standard and Poor’s.

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